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INDIAN INDUSTRIAL AND MANAGEMENT SERVICES (IIMS) 39/1, Pankaj Society, Bhatha, Paldi, AHMEDABAD-380007. INDIA Mobile : 9824356125 Ph : 40040481 Telefax : 91-79-26632831 (Editor Mobile :987926 0064)

www.newclothmarketonline.com E-mail : iimsad1@gmail.com EDITORIAL BOARD

JUNE 2017 (VOL. 31, NO. 6)

CONTENTS

Dr. Anandjiwala R. : Business Area Manager, CSIR, South Africa Bhatia Kailash

: CEO-IMG, Pantaloon Retail (I) Ltd.

Jasuja G.D.

: IIMS, Ahmedabad

Dr. Mittal R.M.

: President (Technology & Strategy) Morarjee Goculdas Spg. & Wvg. Co. Ltd., Mumbai

08 EXECUTIVE PAGES

Dr. Oza K.I.

: Textile Consultant, Ahmedabad

Prof. Patel M.R.

: Ex-Principal, Vishwakarma Govt. Engg. College, Ahmedabad

Dr. Paul Roshan

: Head, Research, Function & Care Dept., Hohenstein Institute, Germany

Dr. Rajan V.S.

: Technical Advisor, Filter Fabrics

Sadhu M.C.

: Textile Consultant, Ahmedabad

Dr. Saxena Y.K.

: Consultant, Industrial Environment

Somani Sampat

: G.M.-Fibre Dyeing, Bhilwara Processors Ltd., Bhilwara

Dr. Shroff J.J.

: Advisor (R&D), Arvind Mills Ltd.

Edited and Published by G. D. Jasuja on behalf of the owners Indian Industrial and Management Services, Ahmedabad.

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Indian Industrial and Management Services

EDITORIAL : "THE GHOST OF 'GST' WILL BE SET FREE ON JULY 1. ARE YOU READY?"

* Kunal Recipe for Interlining Finish * Revolutionary Reusable Sponge that Soaks up Oil * * * *

Research: Compression Tights Don't Help Runners Sustainable Biomedical Textiles for the Future Hohenstein Group's Center for Medical Textiles Innovation award for MOTEX intelligent kneebrace

* * * *

Helping Stores Navigate Changing Retail Waters Tech-Textiles to Improve Macroalgae Cultivation Perfect Fit Online: Garment Sizing Technology Saraguard-850: Non Leaching Antimicrobial Agent

* Colourtex Processing Recipe for Kimaya Saree 32 LIST OF INDL. ENTREPRENEURS' MEMORANDUM : TEXTILE & ALLIED SECTORS (APRIL 2017) 35 LIST OF NEW TEXTILE & ALLIED COMPANIES REGISTERED IN INDIA (APRIL 2017) 42 A REVIEW OF FIRE BLOCKING TECHNOLOGIES FOR SOFT FURNISHINGS (PART I)

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"INDIAN INDUSTRIAL & MANAGEMENT SERVICES" 39/1, Pankaj Society, Bhatha, Paldi, AHMEDABAD-380007. INDIA Mobile : 9824356125 Ph : 26632831 Managing Editor and Publisher : G.D. JASUJA

55 INTERNATIONAL BUSINESS PAGES * Sustainable Garment Value Chains Through EU * Firms Approved by Myanmar Invest. Commission * Bangladesh: Export-Led Growth of RMG Sector * EU to Screen Bangladeshi Goods for Explosives * Cotton Market Price Outlook May 2017 * International News & Technical Developments 87 NEWS BRIEFS

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NEW CLOTH MARKET, JUNE 2017

NCM-JUNE 2017

NEW CLOTH MARKET The Complete Monthly Textile Magazine from Textile Technologists

Published by

IIMS AHMEDABAD

ADVISORY BOARD Mr. Amin K.D. Dr. Bhat Prabhakar Dr. Deo H.T. Dr. Gandhi R.S. Mr. Garde A.R. Mr. Jain K.C. Mr. Lekhadia Atul Dr. Patel B.B. Mr. Shah H.K.

: : : : : : : : :

Ex. Regional Manager, Colourtex Pvt. Ltd., Ahmedabad Head - Textile Dept., Shri Vaishnav Institute of Technology & Science, Indore. Ex Professor (Fibre Chemistry), U.D.C.T., Bombay. Ex-Director, MANTRA, SURAT Ex-Director, ATIRA Processing Manager, Bhilwara Suitings, Bhilwara Managing Director, Kunal Organics Pvt. Ltd. Professor of Economics, Gandhi Labour Institute, Ahmedabad Financial Adviser, ANZ Exports (India), Ahmedabad

TECHNICAL COMMITTEE Mr. Ahmed H. Mr. Bhagat A.D. Mr. Dalal C.R. Mr. Gupta P.K. Mr. Hardik Shah Dr. Jamdagni Rishi Mr. Kapoor Ajay Dr. Mahapatra N.N. Mr. Mehta A.K. Mr. Patel Kiritkumar V. Mr. Ramesh Shah Mr. Sanghvi Lalit Mr. Shukla K.S. Mr. Shukla Pankaj Mr. Thukral P.S. Mr. Vasudva K.N. Mr. VC Patel Mr. Vijay Dhar Prof. (Dr.) Wasif A. I.

: : : : : : : : : : : : : : : : : : :

Retd. Officer Incharge, Textile Committee, Govt. of India, Ministry of Textiles, Ahmedabad Textile Consultant, Ahmedabad Technical Consultant, Ahmedabad Director, Anant Polyesters Pvt. Ltd., Ahmedabad Marketing Director, Embee Corporation, Ahmedabad Director, Technological Institute of Textiles (TIT), Bhiwani Technical Manager, Reliance Textile Industries, Ahmedabad President, Colorant Limited, Ahmedabad General Manager (Fabric Processing) Bhilwara Processors Ltd., Bhilwara CEO, Raghuvir Synthetics Limited, Ahmedabad Director, Adman Forex & Services Pvt. Ltd., Ahmedabad Textile Processing Consultant, Ahmedabad Textile Consultant, Ahmedabad President (Marketing), Comet Chemicals, Ahmedabad Design & Development Consultant (Thukral Consultex), Ahmedabad Textile Consultant, Modern Terry Towels, Ahmedabad CEO, Perfect Laboratory, Ahmedabad GM (Processing), Ahmedabad Dyeing & Printing, Ahmedabad Ex-Principal, D.K.T.E. Society's Textile & Engg. Institute, Ichalkarnji

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WHAT ARE YOU WAITING FOR?

"The Ghost Of GST will be Set Free. Are You Ready?" GST - Goods and Services Tax - which will be a single destination based consumption tax - is all set to replace existing taxes, including CENVAT, Octroi, Sales Tax, and Excise Duty, etc. from July 1, 2017. According to the Empowered Committee of State Finance Ministers, constituted by the Government of India: "GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the producer's point and service provider's point up to the retailer's level. It is essentially a tax only on value addition at each stage, and a supplier at each stage is permitted to set-off, through a tax credit mechanism, the GST paid on the purchase of goods and services as available for set-off on the GST to be paid on the supply of goods and services. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages." The Committee acknowledges that "the present forms of CENVAT and State VAT have remained incomplete in removing fully the cascading burden of taxes already paid at earlier stages. Besides, there are several other taxes, which both the Central Government and the State Government levy on production, manufacture and distributive trade, where no set-off is available in the form of input tax credit. These taxes add to the cost of goods and services through "tax on tax" which the final consumer has to bear. Since, with the introduction of GST, all the cascading effects of CENVAT and service tax would be removed with a continuous chain of set-off from the producer's point to the retailer's point, other major Central and State taxes would be subsumed in GST and CST will also be phased out, the final net burden of tax on goods, under GST would, in general, fall. There are two types of GST. CGST: Central Goods and Services Tax, paid on all transactions, collected by the Center and SGST: State Goods and Services Tax, paid on all transactions within a State, collected by the States. While the location of the supplier and the recipient within the country is immaterial for the purpose of CGST, SGST would be chargeable only when the supplier and the recipient are both located within the State. Each taxpayer would be allotted a PANlinked taxpayer identification number in line with the prevailing PAN-based system for Income tax facilitating data exchange and taxpayer compliance. GST will be managed through the GST Network, GSTN â&#x20AC;&#x201C; http://gstn.org/. All taxes will be paid online and there will be no manual filing of returns. Post generation of challan online, you can pay GST by Debit/credit card, Internet Banking, through NEFT/RTGS or cash/cheque. Cash payments will be first deposited in the Cash Ledger. Payment can also be debited from the Credit Ledger. After Demonetization, the introduction of the GST is the biggest step being taken by the present government and, if newspaper reports are any indication, there is a tremendous amount of uncertainties, confusion and anxiety being felt by the business community. The large corporations are able to afford expensive consultants and legal experts to overcome their difficulties, but the SME sector and also the traders' community is in for a big change in their working style and system. The IT systems in place by the government and also the internet services/IT infrastructure available in the Digital India would all face the biggest stress test of their lives. Most fears emerge from the thought that the results of this test may not be up to the mark for at least quite a few months till the real-time optimization of all the stakeholders' competencies takes place. Hope the government has learnt the lesson from the DeMo and is able to avoid the second big disruption in the country's business world. For ensuring this they can even postpone the GST implementation for another six months to be doubly sure of the smooth transition. It is important that all stakeholders know fully well the GST, and not merely its ghost! G.D. JASUJA Managing Editor

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INTERLINING FINISH Interlining and Cuff Fabrics The interlining and cuff fabrics have to be imparted anti-shrink, resilient stiff finish. The recipe used must ensure minimum shrinkage and loss in stiffness during washing at different conditions. Sanforizing of the fabric before treatment will help in obtaining minimum shrink resistance and smoothness of the fabric surface. Addition of starch derivatives is also recommended for obtaining stiffness and addition of an optical brightener in the finishing bath is recommended to improve the whiteness. The effect on 100% cotton fabrics is found to be better than that on Polyester/Cotton blends. Finishing Recipe 115gpl 35gpl 60gpl 80gpl 9gpl 10gpl 3.25gpl

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Maize Starch Fixer-200 (Melamine Formaldehyde Resin) Unimul-800 (Copolymer of Polyvinyl Acetate Emulsion) Unimul-MB (Plasticised Polyvinyl Acetate Emulsion) MgCl2 Uninol-PEL (Micro Emulsion of Polyethylene Wax Emulsion) Leucophor BFBI (Optical Brightening Agent)

Pigment Blue + Violet as per the whiteners requirement 1cc 2.5gpl

: :

Acetic Acid Wetting Agent

Application Method Stenter Pad Dry with Three Dips & Two Sqeeze Nips Speed 15 Metres Per Minute; 5 Compartment The main function of interlinings is to maintain reasonably good dimensional stability of apparel clothing. Generally, interlinings are made from fabrics consisting of cotton or spun rayon in warp and a rayon blended yarn in weft. Interlining may be described as supporting fabric which must have good firmness, and also the required elasticity and shape retention properties. These properties should remain intact even when the fabric is subjected to washing and dry cleaning. Interlining fabric should have good resistance to shrinkage. The stiffening agent used for finishing interlining cloth should have ability to form an elastic and tough film on the surface of the fabric. This film should withstand stresses caused due to repeated bending. Cotton and its blends with polyester are generally used for collar interlinings which have to be resistant to shrinkage, stiff as well as elastic. For washable apparels these properties should have considerable permanency. The selection of the stiffening agent depends on the properties expected from the finish which in turn depend upon the end usage of the interlinings produced through such finishing. A number of finishing products based on starches and starch derivatives, plastic dispersions, polyvinyl alcohol, dimethylol urea and other compounds are available in the market. One can have a cost effective result oriented recipe through judicious selection of such products depending on the end properties required from a particular interlining finish. The above recipe is just an illustration only. This page is sponsored by :

Kunal Organics Pvt. Ltd. : Leaders in New Generation Textile Processing Chemicals Address : 34, Madhuvan Towers, Madalpur, Ellis Bridge, Ahmedabad-380 006. Fax : 91-79-26409677 Email : mail@kunal.com NCM-JUNE 2017 8

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Reusable Sponge that Soaks up Oil, Could Revolutionize Oil Spill & Diesel Cleanup When the Deepwater Horizon drilling pipe blew out seven years ago, beginning the worst oil spill in U.S. history, those in charge of the recovery discovered a new wrinkle: the millions of gallons of oil bubbling from the sea floor weren’t all collecting on the surface where it could be skimmed or burned. Some of it was forming a plume and drifting through the ocean under the surface. Now, scientists at the U.S. Department of Energy’s (DOE) Argonne National Laboratory have invented a new foam, called Oleo Sponge, that addresses this problem. The material not only easily absorbs oil from water, but is also reusable and Oleo Sponge can be wrung out, the oil collected, and the can pull dispersed oil from the entire wa- material reused—it has stood up to dozens of cycles so far without breaking down. Photo by Mark Lopez/Argonne ter column—not just the surface. National Laboratory “The Oleo Sponge offers a set of possibilities that, as far as we know, are unprecedented,” said co-inventor Seth Darling, a scientist with Argonne’s Center for Nanoscale Materials and a fellow of the University of Chicago’s Institute for Molecular Engineering. We already have a library of molecules that can grab oil, but the problem is how to get them into a useful structure and bind them there permanently. The scientists started out with common polyurethane foam, used in everything from furniture cushions to home insulation. This foam has lots of nooks and cran- Argonne postdoctoral researcher Ed Barry wrings out a nies, like an English muffin, which could sheet of Oleo Sponge during tests at Argonne. Photo by provide ample surface area to grab oil; but Mark Lopez/Argonne National Laboratory they needed to give the foam a new surface chemistry in order to firmly attach the oil-loving molecules. Previously, Darling and fellow Argonne chemist Jeff Elam had developed a tech-

Argonne scientists tested the material’s performance in saltwater at Ohmsett, the National Oil Spill Response Research & Renewable Energy Test Facility, a massive outdoor seawater tank in New Jersey for testing cleanup technology. Tests showed that Oleo Sponge did successfully collect both crude oil and diesel from the water column. --------------------------------------------------------->

Photo by Mark Lopez/Argonne National Laboratory

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nique called sequential infiltration synthesis, or SIS, which can be used to infuse hard metal oxide atoms within complicated nanostructures. After some trial and error, they found a way to adapt the technique to grow an extremely thin layer of metal oxide “primer” near the foam’s interior surfaces. This serves as the perfect glue for attaching the oil-loving molecules, which are deposited in a second step; they hold onto the metal oxide layer with one end and reach out to grab oil molecules with the other. The result is Oleo Sponge, a block of foam that easily adsorbs oil from the water. The material, which looks a bit like an outdoor seat cushion, can be wrung out to be reused—and the oil itself recovered. Oleo Sponge At tests at a giant seawater tank in New Jersey called Ohmsett, the National Oil Spill Response Research & Renewable Energy Test Facility, the Oleo Sponge successfully collected diesel and crude oil from both below and on the water surface.

Oleo Sponge can pick up oil that has dispersed into the water column, not just a slick sitting on the surface—which no commercially available products can do. Photo by Mark Lopez/Argonne National Laboratory

“The material is extremely sturdy. We’ve run dozens to hundreds of tests, wringing it out each time, and we have yet to see it break down at all,” Darling said. Oleo Sponge could potentially also be used routinely to clean harbors and ports, where diesel and oil tend to accumulate from ship traffic, said John Harvey, a business development executive with Argonne’s Technology Development and Commercialization division. Elam, Darling and the rest of the team are continuing to develop the technology. “The technique offers enormous flexibility, and can be adapted to other types of Oleo Sponge soaks up oil spills from water cleanup besides oil in seawater. You could attach a different molecule to grab any specific substance you need,” Elam said. The team is actively looking to commercialize the material, Harvey said; those interested in licensing the technology or collaborating with the laboratory on further development may contact partners@anl.gov. Argonne scientists Anil Mane, Joseph Libera and postdoctoral researcher Edward Barry also contributed to the development of the Oleo Sponge. Preliminary results were published in a study in the Journal of Materials Chemistry A, titled “Advanced oil sorbents using sequential infiltration synthesis.” The research was funded by the U.S. Coast Guard and the Bureau of Safety and Environmental Enforcement. The team used resources of the Center for Nanoscale Materials, a DOE Office of Science User Facility, in the development of the material. Argonne National Laboratory seeks solutions to pressing national problems in science and technology. NCM-JUNE 2017 14

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Disasters on the scale of the Exxon Valdez and Deepwater Horizon serve as harrowing reminders of the devastating effects uncontrolled oil spills have on the environment. Skimming, burning, and dispersing oil are only partially effective and carry their own ecological impacts. An enticing alternative strategy involves oil sorbents capable of efficient extraction of oil from water bodies, which in turn necessitates the design and implementation of novel materials Here, researchers at the Argonne National Lab extend methods of sequential infiltration synthesis (SIS) traditionally only applied to nanometer scale thin films to create oil sorbents based on macroscopic, commercially available polymeric foams. Targeting superoleophilic and superhydrophobic chemistries, they demonstrate the propensity of SIS-based modifications in oil spill remediation and demonstrate its efficacy in crude oil sorption in model seawater. They find crude oil sorption on the order of 30 and 90 times the initial foam weight for polyurethane and polyimide, respectively, both with highly favorable reusability. The new material from Argonne National Lab is not only more absorbent than other materials, it also has the ability to be reused. In tests, the 'oil sponge' could absorb 90 times its weight in oil before being wrung out and ready to use again. Such a material could drastically lower cleanup costs for future oil spills. The sponge is made of a polyurethane foam coated in silane, which attracts oil. The ratio of the polyurethane to silane has to be precise: too little silane and the sponge won't absorb the oil, too much and the sponge can't be reused. Getting this ratio right is the trickiest part of the process. This delicate balance may make the sponge unusable in the open ocean, but it still holds promise in calmer coastal areas. The team is currently working on additional tests and refining the manufacturing process for large-scale production. The nation's first national laboratory, Argonne conducts leading-edge basic and applied scientific research in virtually every scientific discipline. Argonne researchers work closely with researchers from hundreds of companies, universities, and federal, state and municipal agencies to help them solve their specific problems, advance America's scientific leadership and prepare the nation for a better future. With employees from more than 60 nations, Argonne is managed by UChicago Argonne, LLC for the U.S. Department of Energy's Office of Science.

Oleo Sponge picks up oil during tests at Argonne. Photo by Mark Lopez/Argonne National Laboratory

Argonne National Laboratory The U.S. Department of Energy's Office of Science is the single largest supporter of basic research in the physical sciences in the United States and is working to address some of the most pressing challenges of our time.

Argonne scientist Seth Darling, who co-invented the material, watches as the Oleo Sponge collects dark brown oil from the water during tests at Ohmsett. Photo by Mark Lopez/Argonne National Laboratory

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Nike Supported Research Reveals Compression Tights Don't Help Runners Columbus, Ohio – Despite the fact that distance runners swear by them, a new study from The Ohio State University Wexner Medical Center finds compression tights don’t help runners go farther or faster. The study, presented at the American College of Sports Medicine’s (ACSM) annual meeting, shows that although compression tights greatly reduce muscle vibration, they don’t reduce muscle fatigue when compared to running without the tights. “When your muscle vibrates, it in- Treadmill (Image: Ohio State University’s Wexner Medical Cenduces a contraction that uses energy, ter) so the theory was that less muscle vibration would translate to less fa“There is nothing in tigue,” said Ajit Chaudhari, who led the this study that shows study and is an associate professor it’s bad to wear comof physical therapy, orthopedics, pression tights. Evmechanical engineering and biomediery little bit of percepcal engineering. “However, the reduced vibration was not associated tion counts when with any reduction in fatigue at all. In running long disour study, runners performed the same tances, so they may with and without compression tights.” Study participants ran on a treadmill for 30 minutes at 80 percent of their maximum speed on two different days, once with compression tights and once without them. Motion capture technology tracked each runner’s body position within a fraction of a millimeter. Participants’ leg strength and jump height were tested before and after each run.

help runners in ways we aren’t able to measure. Although the results showed that the compression tights did not reduce fatigue in runners, there may be other benefits. If runners feel better while wearing compression tights, that’s enough to keep using them."

“We have a specialized treadmill with force sensors embedded in it that measures how hard a runner’s foot is landing, how they’re able to push off and how that changes over time,” Chaudhari said. “The runners also wore a heart rate monitor so we could measure their exertion throughout the run.” One reason for trying to slow fatigue with compression tights, aside from running faster for longer, is the theory that fatigued runners alter their form and put more strain on their joints, which may increase overuse injury risk. However, further research NCM-JUNE 2017 16

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showed that experienced runners had no more strain on their joints at the end of a training run than at the beginning. Although the results showed that the compression tights did not reduce fatigue in runners, Chaudhari says there may be other benefits. If runners feel better while wearing compression tights, that’s enough to keep using them. “There is nothing in this study that shows it’s bad to wear compression tights,” he said. “Every little bit of perception counts when running long distances, so they may help runners in ways we aren’t able to measure.” Additional research will focus on other aspects of compression tights and the possible benefits to runners in regards to performance and workout recovery. This study was supported by a research grant from Nike, Inc.

Does Compression Clothing Actually Work? Studies conducted by German researchers have also found that compression gear is useless for distance runners, but can benefit anyone performing explosive exercises. Athletes and fitness fiends alike have very prominent opinions regarding compression gear. The supremely snug attire is thought to improve performance and speed up recovery, but researchers have a confession to make: compression clothing is pretty much useless for endurance runners. German researchers have also found that compression gear (But hey, at least it covers up some is useless for distance runners, but can benefit anyone perleg...) forming explosive exercises. The study, published in the International Journal of Sports Physiology and Performance way back in 2013, rounded up 16 competitive male distance runners. They were fixed with monitors and masks to measure their gait, oxygen intake, and other variables, then set loose on a treadmill, running at three progressively increasing speeds. Compression sleeves were slipped over calves, and the treadmill test was repeated. Results showed that there was no statistically significant difference in running efficiency or biomechanics between when the runners wore compression and when they did not. If the sleeves had functioned as expected, the runners would have used less oxygen. Fear not if you’re a sprinter, a basketballer, or a bodybuilder, though. Compression gear can be advantageous in situations where an athlete is engaging in explosive movements, like sprinting, leaping and jerking, a 2013 review of more than 30 studies found. And if you really enjoy the suctioning tightness of compression gear, then keep at it. You have nothing to lose. “Since beliefs are strong performance enhancers, I would recommend compression clothing to persons who believe in the performance-enhancing effect,” says Billy Sperlich, a professor of exercise science at the University of Würzburg in Germany, who co-authored the review. Just make sure the gear fits properly (aka it isn't too tight).

"People’s expectations of what the clothes will accomplish may color their results. Since beliefs are strong performance enhancers, I would recommend compression clothing to persons who believe in the performance-enhancing effect. The good news is that no study to date has found any negative physiological effects from wearing compression clothing. So if you do decide to experiment, “there is not much to lose besides $40 or so.” Prof. Billy Sperlich NCM-JUNE 2017 17

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Sustainable Biomedical Textiles for the Future

A human muscle cell is growing on a fleece made from micrometer-thin polymer fibers. In this way, the synthetic membrane can be biologically camouflaged, which means that it looks like a normal blood vessel to the immune system. Credit: Swiss Federal Laboratories for Materials Science and Technology The textile and clothing industry has a long history in Switzerland. In order to remain competitive in the international market, the industry relies on innovations. The "SUBITEX â&#x20AC;&#x201C; Sustainable Biomedicine Textiles" research initiative was set up by Empa and Swiss Textiles, the Swiss textile industry association, for this very purpose. Through innovative approaches and knowledge transfer, researchers and players in the industry are working tirelessly together to promote innovations in the field of biomedical textiles, and to bring them to the market more rapidly. Textiles are especially suitable for use on and in the human body. The body itself consists of many fibers too, including muscle, tendon and nerve fibers. Textiles can also be used to make copies of entire organs or parts of them. One current example of this is a major project involving Empa, called "Zurich Heart": under the aegis of the Zurich University Medicine initiative, in collaboration with the University Hospital, the University and ETH (Swiss Federal Institute of Technology) Zurich, Empa researchers are developing an artificial heart pump. This will include a fleece textile with a layer of heart muscle cells, which will not be detected by the blood as a foreign body. "We need to say goodbye to the idea that the development of textiles revolves around cotton T-shirts," says RenĂŠ Rossi, Subitex project manager and head of Empa's Biomimetic Membranes and Textiles lab. Instead, according to Rossi, their research is focused on a very wide range of ceramic, metal, wood, and synthetic fibers. "A textile is not just a cloth either, but rather a two-dimensional entity derived from a onedimensional material: a fiber," he adds. The entities derived from this are flexible, malleable, stretchable, and light knitted, woven, or crocheted fabrics. Rossi continues: "Theoretically, there are no limits to textile materials or their properties." Many Swiss textile companies have also recognized this, successfully transforming themselves into specialist manufacturers of highly technical and high-quality products. They have networked more and more intensively with researchers and have skilfully occupied economic niches. Empa offers its services as a research partner precisely because it draws a line from basic research, as in the case of the "Zurich Heart" project, all the way to products that are close to the market. For example, it has developed optical fibers that are used in hospitals to measure the vital functions of premature babies, or as biosensors with pH-sensitive fibers to monitor wounds. Other examples of applications include textile pressure sensors that can be installed in wheelchairs, for instance, in order to show incorrect pressure loads; textile plasNCM-JUNE 2017 18

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ters that release medication in a targeted way; and a wettable chest strap that can be reliably used for long-term monitoring of electrocardiograms for cardiovascular patients. A research initiative with 15 industrial partners In order to promote further innovations and make even better use of the vast all-round potential of textiles, Empa and the Swiss industrial association, Swiss Textiles, established the "SUBITEX" research initiative two years ago. The development and use of innovative materials, fibers, fabrics and processes should assure Swiss textile companies a long-term competitive advantage in the global market. As part of this initiative, ten projects co-financed by the Commission for Technology and Innovation (KTI) have already been launched. Fifteen textile companies have now joined the initiative, including Flawa AG, Cilander, E. Schellenberg Textildruck AG, Mammut Sports Group, Schoeller Textil AG, Serge Ferrari Tersuisse AG, and TISCA Tischhauser & Co. AG. So that it can pass on even more textile expertise to Subitex partners, Empa has invested part of the financial contributions from Subitex in the "Self-care materials" research program of the Competence Center for Materials Science and Technology (CCMX) of the ETH domain. This program investigates the substance emission and absorption properties of fiber structures. The CCMX program is a mix of basic and industrial research and is extremely lucrative, because the Swiss National Fund (SNF) contributes the same amount to the program as that contributed by the industry. For this purpose, Empa's electrospinning and microfluidics systems develop fiber systems from smart polymers. These systems respond to external influences such as temperature, pH value, humidity, or pressure. Today's systems use small, passive capsules that can only release substances by decomposing. What makes self-care materials special is that their innovative fiber systems release substances in a targeted way over a specific period of time when they are "activated." Very small fibers made from smart polymers can be used not only in biomedical textiles and fabrics, but also in packaging films for the food industry.

Electrospinning: An electric field accelerates the jet of polymer solution, which follows a spiral trajectory and is elongated enormously. The nanometer thin fibers collect on the counter electrode with a velocity of up to 100 meters per second.

The “Zurich Heart” project is a prime example of the direction in which textile research is heading in the field of biomedicine: heart pumps are being developed that one day will minimise the need for donor hearts. Artificial heart pumps have been in use for around 30 years, but they can cause blood clots because the blood comes into contact with an exogenous material. To prevent this, the patient’s own cells need to be cultivated on the interior surface of the Zurich Heart pump. And this is where Empa’s textile research comes in.

How the fleece can be spun using muscle cells and how the elastic material can be firmly attached to the interior of the heart pump.

The SUBITEX research initiative is scheduled to last five years and will continue to run until 2020. (Courtesy: Swiss Federal Laboratories for Materials Science & Technology)

Fleece – seven times lighter than copying paper Fleece comprises continuous or cut fibres in a non-oriented form and without interweaving. In other words, it does not have a regular structure. Under the microscope it resembles an unrolled ball of wool. The fleece for the Zurich Heart consists of fibres that are several hundred nanometres thick and are made from a polymer solution. By way of comparison, the fibres are around 200 times thinner than a human hair. The fleece is spun using the electrospinning method. Here the polymer solution is placed in a syringe and connected to a high-voltage power supply. The electrical field causes a jet to be formed, and the fib re s a re s wirle d and then s ep a r a te d onto a counter- electrode where the fleece is formed. At the same time, the Empa researchers spray the fleece with muscle cells as it is formed so that the latter become embedded in it. They have already succeeded in producing the fleece and spraying it with cells.

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Hohenstein Group Establishes the Health Center for Medical Textiles Boennigheim (dh): With effect from 1 May 2017, the Hohenstein Institute has set up a new centre for textile public health as part of its group of companies in Boennigheim. The Hohenstein Health Center will concentrate specifically on medical textiles, i.e. clothing, textile products or processes which affect human health. Prof. Dirk Höfer is leading the new centre as Medical Director and Managing Director of Hohenstein Laboratories GmbH & Co KG. The use of textile products in disease prevention and in maintaining and restoring human health in everyday life - and also for medical, caring and hygiene purposes - has increased greatly in scope and diversity. Consequently, many of the users and other people involved in healthcare do not have the necessary clear, up-todate and scientifically-based information about the benefits, risks, applications and areas of use of these textiles. Medical textiles in the healthcare sector have been a growth market worldwide for decades, also benefiting small and medium-sized companies producing interesting products, but the framework conditions are going to become much more difficult in future: The changes that will be introduced by the EU Directive on Medical Devices (MDR) which enters into power in 2017 will present new challenges for all textile companies operating in the medical textiles sector. For example, there will be higher specifications for clinical evaluation.

With "ARTUS", the ARTificial UteruS, scientists at the Hohenstein Institute in Boennigheim have developed the world's first artificial uterus, which helps premature babies to develop by providing sensory stimulation. It is against this background that the Hohenstein Health Center will in future be developing and supporting medical expertise on textile products affecting human health, both those that are either already on the market and those due to be launched. It will also be establishing links with the various

Diagram showing how the artificial uterus "ARTUS" works. The new product won the "Techtextil Innovation Award" in the "New Application" category in 2015. © Hohenstein Group NCM-JUNE 2017 20

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players in the healthcare sector who deal with this kind of textile, and sharing expertise and new findings within the textile industry and among doctors and consumers. The Hohenstein Health Center will offer specialist medical expertise to support efficient product development, from the initial research concept through to product launch on the market. The main purpose of the new centre will be to support the use of textiles to promote, protect and restore good health.

More information can be found at: www.hohenstein.com/HohensteinHealthCenter. Contact: Prof. Dirk HĂśfer, Medical Director, will be in charge of the Hohenstein Health Center. He studied Theoretical Medicine at the Philipps University in Marburg. He brings extensive medical and textile expertise to the Hohenstein Health Center. The main focus of his work is on textile products that affect people's health. He evaluates the benefits and risks of clothing and technical textiles in everyday conditions and in a clinical setting. Email: d.hoefer@hohenstein.de

Centexbel wins Techtextil Innovation Award The MOTEX intelligent kneebrace has been developed by an international highly motivated and complementary project consortium of four key partners formed through the international CORNET funding channel. The smart textile is equipped with integrated sensors and corresponding embedded electronics. They condition the sensor signal and transmit the data wirelessly to a smartphone app.

Centexbel is one of the eight winners of the Techtextil Innovation awards. Our entry in the competition in the categorie New Applications was a smart kneebrace, capable of monitoring and communicating all knee angle The smartphone app delivers direct movements of patients or athletes via bluetooth. feedback to the user about the quantity and performance of the exercises and sends the available information to a central server accessible to coaches and medical experts. Motex is an intelligent knee brace and smartphone app that can be used in the rehabilitation of patients after total knee replacement. Personalized exercise programs are selected by physiotherapists and forwarded to the app on the smartphone of the patient. This Motex app communicates with the intelligent brace. Furthermore, the app allows the patient to follow up their own exercises. The brace records the exercises and gives immediate feedback on the execution of the exercises to the patient and the physiotherapist. In case exercises are skipped the patient may also explain why he doesnâ&#x20AC;&#x2122;t execute this specific exercise. This way, patients are motivated to perform their exercise schedule correctly and the physiotherapist will get an objective indication of the evolution of the patient at home. This prototype is tested in a clinical study where 8 patients and their physiotherapist evaluated the usability of the Motex brace and app. Next to the objective and direct feedback which is very useful, the Motex device also worked as a motivator to perform their exercises.

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New Tech: Helping Stores Navigate Changing Retail Waters Experts may differ on exactly why the Titanic sank — was it the steel used, the rivets that held it together? But no one questions what pre-empted its sinking: the inability to be nimble enough to change course once lookouts spotted an iceberg in the dark. After last week’s disappointing first-quarter numbers from several major department stores, it would be easy to make an analogy between the ill-fated ship and traditional retailing. However, it’s important to keep in mind that even though the Titanic went down, shipping did not die. And in retail, where some may be slow to change course, others are navigating through the proverbial ice by incorporating technology in ever newer ways.

"Millennials, moms, and urban shoppers are all saying they want things faster, personalized, and they want to click and collect it." - Candace Corlett, President, WSL Strategic Retail H&M’s digital fashion house Ivyrevel is working with Google on a “Coded Couture” app that will make dresses based on user location, weather, activities, and daily routine. Adidas ran a pop-up shop in Berlin called Knit For You, where wool sweaters were machine-knitted in-store within a few hours, based on the customer’s scanned body measurements and personal design preferences. And TopShop has created the Top Pitch contest, to find tech companies that can truly meld fashion and wearable technology that consumers actually desire. “Hats off to these three retailers for coming up with three attempts that are really different. Good for them,” says Candace Corlett, president at WSL Strategic Retail. “We see in our recent research that shoppers are quickly embracing special services like personalization, which is exactly what these three services offer. Others, like StitchFix, get such quick adoption because they’re bundling outfits together and sending them directly to the customer. With these department stores, there’s a lot of walking, searching and time involved. I want to see Macy’s survive, but I stand at the door to the largest store in the world and say no thank you.” Although the majority of consumers like to browse for (50 percent) and research (66 percent) clothing online, the majority prefer the remainder of their apparel shopping journey to take place in stores, according to the Cotton Incorporated Lifestyle Monitor™ Survey. These other parts of the “journey” include asking questions (68 percent), purchasing (75 percent), asking post-purchase questions (52 percent), and repurchasing (54 percent). But Corlett says the knowledge that shoppers still prefer to buy clothes in-store has allowed retailers to stay their course for too long, which could have very detrimental effects on their business. “Millennials, moms, and urban shoppers are all saying they want things faster, personalized, and they want to click and collect it,” Corlett says. “H&M’s app that let me get a dress that suits me where I live — that’s personalized. It’s not about being a preferred customer.” NCM-JUNE 2017 22

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WSL’s Shoppers’ Guide to Restructure Retail found that technology, when employed correctly, is solving problems like “the quick trip that’s not quick” and long checkout lines. “So go with technology,” Corlett says. “Not listening to the shopper has led to declining sales and missed margins.” Recently, JC Penney, Macy’s, Kohl’s, and Nordstrom all reported first-quarter decreases in comp store sales. But Adidas’ Knit for You shop serve an example of how future shopping experiences can look, providing consumers with an individual product and experience, says Mandy Nieber, spokesperson. The shop was set up primarily to test the concept of in-store customization for consumers, or — as the company refers to them — creators. The Knit for You initiative originated in Adidas’ StoreFactory research project. “The focus of the research project StoreFactory primarily was on the intelligent connection of the different steps in the production process – from individual assessment, to design to in-store production,” Nieber says. Customized apparel is of great interest to today’s consumer. In fact, 7 in 10 say they would be more loyal to brands that gave them the ability to customize their clothing purchases, according to Monitor™ research. Consumers 13-to-55 (74 percent) are significantly more likely than older shoppers (59 percent) to offer their loyalty for customizable clothing. Corlett says the apparel retailing industry shouldn’t expect one single technology to appeal to the majority of shoppers. “That’s Titanical thinking,” she says. “Growth will come from satisfying many fringe groups.” She also says the industry shouldn’t fear technology will take away everyone’s jobs. “Instead of having employees at checkout, you can offer self-checkout or no checkout, as Amazon introduced,” she says. “Stores can put those employees on the floor to gather items for click-and-collect. Or they can serve as a personal shopper who puts outfits together for me so I can go try on fragrances. Let me use my time in your store the way I want to. When I see a TV on the wall near the checkout, it’s obvious there are long lines. It’s not smart.” Stores need to figure out how to employ tech that works for them while consumers are still coming in. Currently, the Monitor™ finds 63 percent say shopping for clothes in stores is a fun social activity. However, 56 percent say they’re less loyal to clothing brands and retailers than they were a few years ago. And 35 percent say there is “no need” to go to a store anymore because, “it is easier to buy online.” For its part, Adidas is looking to evolve right along with its target customer. “Creators today live in a constantly changing world,” Nieber says. “This shapes their behavior and expectations. They demand newness and immediacy without compromise. Our goal is to provide our consumers with the best brand experience they can get, no matter where and when they choose to shop.” NCM-JUNE 2017 23

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Advanced Technical Textiles to Improve Macroalgae Cultivation David De Smet

Advanced 2D Textile Substrates Yield 3 - 5 Times More Biomass than State of the art 1D Rope Based Systems Objective

Seeding to Harvesting

If we want to develop a profitable and sustainable seaweed business in Europe then we have to: -

Mechanize all processes (seeding, monitoring, harvesting, etc.) => cost-efficient

Cultivate 2D (or 3D)

Cultivate in a smart and sustainable way => integrated

Serve existing and new markets

Concept Development of substrates based on advanced textiles to facilitate open sea cultivation of seaweed, having a highpotential as source for food (additives), feed, biochemicals/biomaterials and biofuels/energy Growing macroalgae ------------------------------------> - Longline cultivation established in SE Asia - Labour intensive process: seeding to harvesting

Substrate What does seaweed grow best on? PES, PVC, Cotton, PA, Kuralon and PP The other key factors are the substrate's chemistry and it's texture. It is observed that the texture can be more important than chemistry. Holdfast does not damage the textile structure. Binder Well selected treatment increases attachment relevantly. The difference between the conventional cultivation method and the AT~SEA method is illustrated in one of the diagrams that follow. It can be noted that the hatchery is NOT needed if we follow the AT~SEA method. The AT~SEA method also gives much better end results in terms of the growout and efficiency of the end product.

Substrate

Demonstrator (Pilot plant) A pilot plant is available for the demonstration purpose. It has a capacity of up to 16 kg/m2 and is illustrated in the diagram. What next? Serve existing markets and explore new markets. NCM-JUNE 2017 24

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Chemistry

Texture

SeaRefinery project Beyond state of the art eco-friendly chemical and enzymatic processing technologies to extract and purify high-value seaweed compounds.

Key Features of SeaRefinery -

Algaebased molecules NCM-JUNE 2017 25

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Cultivation method

Demonstrator

Nutraceuticals, functional foods

Cosmetics,

Pharmaceuticals

Bio-based materials for industrially purpose

Conclusions 1. The AT~SEA consortium has developed, patented (PCT) and demonstrated advanced 2D textile substrates that yield 3-5 times more biomass than state of the art 1D rope based systems. 2. Seaweed cultivation in Europe has huge potential for multiple applications (food and feed (additives), biochemicals/materials, etc.) 3. Need to serve existing markets and explore new markets

(Courtesy: Centexbel, the most important collective research centre of the Belgian textile companies) NCM-JUNE 2017 26

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Finding the Perfect Fit Online: Garment Sizing Technology Despite the advent of online shopping, many consumers still do not feel comfortable buying clothes online given the risk of receiving clothes that do not fit. This lack of confidence hurts fashion e-retailers, as well as brick and mortar retailers with online platforms. Technology, however, is remedying this problem through the use of pictures, videos and algorithms to determine perfect clothing size and improve the shopping experience. For years, retailers have used fixed charts that require body measurements to estimate size. Given the vast variety of body proportions, these charts are often unreliable and lead to ill-fitting garments. Sizing technology now allows consumers to submit pictures that allow for algorithms to determine their proper size â&#x20AC;&#x201C; thereby increasing consumer confidence and attendant retailer sales. This technology has flourished in the menswear industry where suits typically require custom tailoring for correct fit. E-retailers like Indochino are revolutionizing the suit buying process and offering consumers well-fitting suits online. Their model is simple. Consumers pick a suit and follow a precise body measurement guide, which is then submitted online. An algorithm uses these measurements to determine size, and the customer receives a fitted garment that does not require further tailoring. Most retailers offer free returns if the suit requires further alterations. E-retailer MTailor uses a more advanced version of this technology. It employs a mobile phone application that accesses the userâ&#x20AC;&#x2122;s camera to take a video of the consumer. MTailor then creates a 3D model, and its fitting algorithm determines the correct size for suits, shirts and denims. MTailor claims that its algorithm is 20 percent more accurate than a tailor and will remake a suit that does not fit perfectly. "We performed a study with multiple individual tailors measuring the same subjects as our app. "On average, we found that we were

Indochino: Who We Are Indochino is at the forefront of revolutionizing menâ&#x20AC;&#x2122;s fashion. Since our founding, we have grown to be one of the largest made to measure menswear brands on the market by providing gentlemen with high quality menswear that makes them look and feel like a million bucks. Our multi-channel customer experience allows men to order their made to measure shirts and suits online, via mobile or in-person at Indochino showrooms in Toronto, Vancouver, New York, San Francisco, Philadelphia, Beverly Hills and Boston. Ultimately, Indochino makes it easy for men everywhere to purchase the best made to measure shirts & suits at a great price. How It Works Measure yourself in 10 minutes, then put your suit on, wrinklefree, right out of the box 4 weeks later. Pick from a full selection of suits, shirts, outerwear and accessories to build your look. We have new and updated designs every week, so your wardrobe can always be updated for every occasion. Have a say in your suit and a say in the details. At Indochino, we offer unique features like 40 character monogramming, collar felts and linings. All your choice, all for free. Follow our step-by-step video guides to set up your measurement profile. We walk you through every detail, so you can have the confidence to get it done right. It takes less than 10 minutes and can be done from the comfort of your home. You don't need a tailor, only a good friend (mom, girlfriend, sister, buddy). Once your order is placed, our team goes through all your measurements to ensure that everything looks good.

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20% closer to the average measurement of all tailors than each individual tailor was to the average measurement of all tailors," claims MTailor. MTailor offers 100% remake or refund guarantee. Widespread implementation of this technology is certain to be a hit amongst young shoppers who prefer the convenience and reduced prices that are usually available online. This technology will aid retailers in improving their online presence. While the cost of implementing such technology may have been cost prohibitive in past years, it is now more accessible, creating a great opportunity to increase revenue and gain market share and customer loyalty. Widespread implementation may also lead to potential legal risks, including related to warranty and privacy issues. Amazon's 3D modeling system to solve online clothes shopping’s biggest problem Issues with the fit of clothing are among the top reasons customers return clothes and footwear bought online, and it’s a costly problem for retailers. IHL, a retail research firm, has estimated that retailers worldwide lose billions each year from returns due to wrong sizing. As Amazon grows into the largest clothing retailer in the US, the number of returns it needs to handle will only increase. Amazon is working on a system to make sure customers get the right size the first time. A patent application filed by Amazon describes a few possible operating methods for a system that makes sizing recommendations to customers based on a “reference item.” Amazon would use a device to take the internal measurements of its products, allowing it to create 3D models it would store in a database. As a user shops, Amazon would be able to recommend products with a similar fit based on whether its dimensions match the reference item within a certain threshold. If, say, you like the way your Converse sneakers fit, then you could be reasonably assured any sneakers Amazon recommends as a match would fit well, too.

Enjoy Your Perfect Fit: Get measured by your phone in under 30 seconds for perfect fitting custom clothing.Your phone's camera is now 20% more accurate than a professional tailor. Our company is headquartered & our clothes are designed in San Francisco. Our tailors are based in China and Bangladesh. We currently make suits, blazers, slacks, jeans, dress shirts and short sleeve shirts. From luxurious wool suits to washed stretch jeans to polka dot shirts, we've got you covered with a wide variety of ever changing fabrics. All of our shirts are made from 100% cotton, with varying thread counts and weights. Our suits are made from 100% wool and utilize advanced fused lining. Our jeans are made from a 98% cotton, 2% elastene blend. The MTailor app (iOS & Android) guides you through taking a measurement video on your device. That video is then converted into a 3D model of your body. Using the physical measurements taken from the 3D model, our fitting algorithm designs a garment just for you!

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Saraguard-850 : Non Leaching Antimicrobial Agent Dr. Naresh M. Saraf Sarex Chemicals A division of Saraf Chemicals Ltd., Andheri (W), India Website: www.sarex.com E-mail: tcmktg@sarex.com Introduction : Mould, mildew, fungus, yeast, and bacteria (microorganisms) are part and parcel of our everyday life. Thousand of species of microorganisms are found in the environment, on our garments and on our bodies. Natural fibres like cotton and wool are more prone to microbial attack due to their inherent characteristics such as moisture regain and chemical composition providing a perfect environment for microbial growth. The microbial growth is influenced by relative humidity and temperature. The growth of microorganisms impairs the functional, aesthetic and hygienic properties of textiles such as staining and degradation of textiles, obnoxious smell form the inner garments, socks and eventually a risk to humans wearing or coming in contact with these fabrics. Odour is an unpleasant phenomenon which is caused not by human perspiration but it is the bacteria that grows in the sweat that causes it. They break down the urea, protein or lactic acid contained in the perspiration, releasing butyric acid. This penetrating odor is extremely unpleasant to the human sense of smell. The sweaty odor can be prevented if the growth of bacteria on the textiles or skin is managed. Antimicrobial finishes prevents the growth of bacteria and textile products finished with them have been proved to be environment-friendly and health-protecting, preventing diseases. The applications of antimicrobial textiles are expanding from industrial textiles to even daily use sports or outdoor wear. Factors influencing the growth of microbes in textiles Cotton textiles in close proximity to the human body provide an ideal living environment for bacteria, yeasts and fungi viz., nutrients, water, oxygen and warmth. In addition to providing these conditions, textiles are continuously exposed to microbial contamination from the skin, dust and airborne particles and other sources. It is not surprising that large populations of microorganisms have been isolated from textiles. Consumers attitude towards hygiene and better lifestyle has created a rapidly increasing demand for antimicrobial textiles, which in turn has inspired Sarex to develop an antimicrobial finishing agent, Saraguard-850, which is a non-leaching type antimicrobial agent based on Silane chemistry. The product is characterized by its outstanding chemical, physical, toxicological and eco-toxicological properties. Fig. 1 : Silane Quaternary Ammonium Compound in Saraguard-850

There are 2 modes by which Saraguard 850 attaches it self to a textile substrate. The hydrolysable groups on the silicon atom in Saraguard-850 is hydrolyzed to silanols and the silanols form chemical bonds with each other and the substrate. Secondly, the silicon functionality enables the product to polymerize, after they have coated the surface, to become almost irremovable. The non-leaching behavior of such a reactive surface allows for the control of surface microbial contamination without the continuous release of toxic components into the environment which can promote the formation of resistant organisms. Mode of action of Saraguard-850 : When a microbe contacts the positively charged organo-functional silane treated fabric surface, the cell membrane is physically ruptured by a sword like action as shown in Fig.2 and then electrocuted by a NCM-JUNE 2017 29

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Fig. 2 : Mechanism of microbial cell destruction by Saraguard-850

positively charged nitrogen molecule as shown in Fig.1. Antimicrobial activity will be effective as long as the surface of the treated substrate remains intact. Since it is not consumed and does not leach-out, the antimicrobial activity is not depleted and continues to control microbial growth. Unique features of Saraguard-850 : *

High quality, innovative product for high-performance textiles

Outstanding durability and effectiveness on all fibers

Ease of application in the usual textile application processes

Effectiveness against a broad spectrum of microbes such as Escherichia coli, Staphylococcus aureus and Klebsiella pneumoniae

Recommended dosage : Saraguard-850

200-450 g/l

Pick up

65-70%

5.0-6.0

pH o

Drying : 140-160 C, 1 min (for all substrate) o : 120-130 C, 1 min (for polypropylene) Results : Antibacterial activity with 420g/l Saraguard-850 treated fabric by AATCC-100 test method. % Reduction in bacteria Samples

S. aureus

Acts indirectly against dust mites

Readily combined with many textile effects

Unfinished

Also available with markers for the highest demands in the supply chain

Saraguard-850 100% 92.25% 420g/l

E. coli

Initial 10 wash Initial

10 wash

100%

94.97%

420g/l Saraguard-850 shows very good antimicrobial activity against S.aureus and E.coli. The antimicrobial finish is durable upto 10 home launderings. NCM-JUNE 2017 30

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Colourtex Recipe (Processing Sequence) for Wet Processing of Kimaya Saree (Single Pass Method) Fabric Details : Warp - 80/72/1750 Twist S.D. Roto 2S & 2Z. Weft - 80/72/1750 Twist S.D. Roto 2S & 2Z. Reed - 84/2 Pick - 64 Width - 51" Gross Wt.- 8.200 Ends - 4700 Process Sequence :

Druming (3600 mts) Cold Wash for 30 mins. Drain Levocol JD Levocol CHWS Caustic Soda

1500 gms. 1000 gms. 3000 gms.

At 130 C/2 Hrs.

Drain

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Cold wash (20 min) Drain Jet Dyeing M/c. (3600 mts) – Weight Reduction Levocol CHWS Caustic Soda

1500 gms 2 -3 gms per meter. (6 – 8 kgs.)

110 C for 45 min

Drain and hot/cold wash. HCL Oxalic acid

4000 gms 1000 gms

90 C for 30 min

Cold rinse Levocol PB

1500 gms

Heat Setting Levocol PB Levocl CAN

500 gms 100 gms for 100 lits

190 C for 30- 45 sec. Shrinkage 15 – 16 %

Print – Dry at 140 C – Loop/Fixation at 170 C for 8 mins. Reduction Clearing and Hydro extract as per standard procedure Finishing on Stenter : Levofin SBI Levofin LF

1.0 % 0.5 %

175 C for 30 secs. And Zero – Zero Finish and Folding.

This page is sponsored by : Colourtex Industries Pvt. Ltd.

Email : totalsolutions@colourtex.co.in Website : www.colourtex.co.in

Colourtex Industries Pvt. Ltd. Surat This information is provided in good faith, to the best of our knowledge and without liabilities NCM-JUNE 2017 31

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List Of Industrial Entrepreneurs' Memorandum (Textile & Allied Sectors) (Filed From : 01/04/2017 to : 30/04/2017) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NA : Manufacture Of New Article, NU : Establishment Of A New Undertaking, SE : Effecting Substantial Expansion Name of Undertaking/Address & Location

Item of Manufacture

Proposed Annual Capacity

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

DMP GLOBAL PRIVATE LTD. COTTON GRAY CLOTHES A36, MANIKAMAL SOCIETY, SURDHARA CIRCLE, THALTEJ, AHMEDABAD, GUJARAT-380052 NU LOCATION: SY. NO.73/P, ANKHOL, KADI, MEHSANA, GUJARAT

4400.000 MTR

VARIYA DENIM PVT LTD., COTTON FABRICS 59, 1ST FLOOR, NEW CLOTH MARKET, AHMEDABAD, GUJARAT - 380002 NU LOCATION: SY NO.1239-1236, NEAR GANGAD RD, DHOLKA, AHMEDABAD, GUJARAT

13500000.000 METER

GLORIOUS CREATIONS PVT LTD., B-19 SACHIN UDYOG NAGAR, HOJIWALA ESTATE SACHIN, VANZ, SACHIN, SURAT, GUJARAT - 394305 NU LOCATION: SAME AS ABOVE

MFG. OF ALL TYPES OF GARMENTS INCLUDING EMBROIDERY GARMENTS PUNJABI SUIT SEMISTICHED

147880.000 PCS

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JAGRUTI SYNTHETICS LTD. WOVEN FABRICS 28 Y.A, CHUNAWALA, INDUSTRIAL ESTATE KONDIVITA LANE, ANDHERI EAST, MUMBAI-400059. NU LOCATION: SHED NO.3,V. KHADI, UMBERGAON, VALSAD, GUJARAT

1000000.000 METER

UNITED POLYFAB GUJARAT LTD., PREPARATION & SPINNING SY NO. 238-239,NAROL SARKHEJ HIGHWAY OF COTTON FIBER INCL. SHAHWADI, OPP NEW ARVEE DENIM, BLENDED COTTON NAROL, AHMEDABAD, GUJARAT - 382405 OT LOCATION: SY NO. 188, MOUJE TEHSIL RD, VILL.TIMBA, AHMEDABAD, GUJARAT

7050.000 MT

VBS TEXTILES PRIVATE LIMITED. FINISHING OF TEXTILES 9TH FLOOR, HERITAGE CHAMBER, MTRS BEHIND AZAD SOCIETY, NEHRUNAGAR, AMBAWADI, AHMEDABAD,GUJARAT-380015 OT LOCATION: PLOT#222/2&3, BEHIND CHURCH, R.P, NAROL, AHMEDABAD, GUJARAT

36000000.000

KING YARNS PRIVATE LIMITED. BLOCK NO. 2098/2/1, KIM-MANDVI RD, NEAR NAROLI PATIYA,VILL.TADKESHWAR, MANDVI, SURAT, GUJARAT-394170. NA LOCATION: SAME AS ABOVE

COTTON YARN 30 SNE COMBED

1682.000 MT

KRISHNA DYEING & PRINTING MILLS PVT LTD., BLOCK NO.221, JOLWA, PALSANA, SURAT, GUJARAT 394305 GM LOCATION: SAME AS ABOVE

DYEING AND PRINTING OF CLOTH COTTON AND SYNTHETICS FABRICS

2000000.000 METER

K. PATEL CHEMOPHARMA PVT LTD., MANUFACTURE OF DYES & 151 TO 155, GIDC, ANKLESHWAR, PIGMENTS IN BASIC FORM BHARUCH, GUJARAT - 393002 GM OR AS CONCENTRATE LOCATION: 151 TO 155 GIDC ANKLESHWAR, BHARUCH, GUJARAT

14000.000 MT

SHAVYAA GEOTEX MANUFACTURING OF PP HDPE 3240.000 2011 MOMAI COMPLEX, NR NEW BOMBAY MKT. WOVEN SACKS AND FABRICS MT UMARWADA, SURAT, GUJARAT - 395010 NU LOCATION: BLOCK NO. 2285 1 B TEHSIL ALUKA MANDVI, SURAT, GUJARAT ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SNF FLOPAM INDIA PRIVATE LIMITED SY. NO.141-1-2-N-142-1, NH 8A EAST, P.O. GOPALPURI, GANDHIDHAM, VARSANA, KUTCH, GUJARAT-370240 NU LOCATION: SAME AS ABOVE

ACRYLAMIDE

120000.000 TONNES

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Name of Undertaking/Address & Location

Item of Manufacture

Proposed Annual Capacity

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RAJ OVERSEAS PLOT NO.149 TO 154, SECTOR -25, HUDA PANIPAT, HARYANA-132103. NA LOCATION: SAME AS ABOVE

MFG. OF CARPETS, RUGS & OTHER FLOOR COVERINGS OF COTTON/WOOL/JUTE & SYNTHETIC FIBRES

283158.000 METER

SHRI DAMODAR YARN MFG (P) LTD., COTTON/LINEN/JUTE AND 1000000.000 6/161 MITTAL ESTATE, SIR M V ROAD, ALL TYPE OF YARNS KGS NR MAROL METRO STATION, ANDHERI EAST, MUMBAI - 400059 NU LOCATION: T-22,ADDL INDL.AREA, TEHSIL NANDGAON. P,AMRAVATI, GREATER MUMBAI, MAHARASHTRA ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

D DECOR HOME FABRICS PVT LTD., WEAVING MANUFACTURE OF 5400000.000 6TH & 7TH FLOOR, S-14, SOLITAIRE CORP. PARK, MAN-NMADE FIBER AND METERS GURU HARGOVIND JI MARG, CHAKALA, MANMADE MIXTURE FABRICS ANDHERI EAST, MUMBAI-400093 SE LOCATION: PLOT NO.F-7/2,MIDC TEHSIL SARAVALI, BOISAR, THANE, MAHARASHTRA ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

BALESHWAR SYNFAB LLP PROCESS OF COTTON/PES FLAT NO.111,113,4TH FLOOR VITHALWADI, VISCOSE/LINEN FABRICS SINDH CLOTH MARKET, KALBADEVI ROAD, MUMBAI, MAHARASHTRA-400002 NU LOCATION: NANDGAON PETH, A. MIDC, AMRAVATI, MAHARASHTRA

800000.000 METER

EXECUTIVE

KARISHMA EXPORTS PLOT#17 SY. NO.6/8, SAPNA INDL. EST, SARAVALI VILL,, KALYAN BHIWANDI ROAD, THANE, MAHARASHTRA-421311. GM LOCATION: SAME AS ABOVE

WEAVING FABRICS

1290240.000 MTRS

MAHALAUXMI PROCESSING HOUSE PVT LTD., PLOT NO.C-231,PH-VIII, NR SBI , FOCAL POINT LUDHIANA, PUNJAB-141010 SE LOCATION: SAME AS ABOVE

FINISHING AND DYEING OF YARNS, TEXTILE FIBRES ETC

1200.000 TONNES

TIJARIA POLYPIPES LTD. A1130 (E), ROAD NO.9-D, VISHWAKARMA,INDL.AREA, JAIPUR, RAJASTHAN-302013. NU LOCATION: SAME AS ABOVE

READYMADE GARMENTS WOVEN

400000.000 NUMBERS

TIJARIA POLYPIPES LTD. CUTTING & PACKING OF 7000000.000 ADDRESS SAME AS ABOVE NU CLOTHH/WOVEN FABRICS METER LOCATION: PLOT# SP-1-2315/2316 TEHSIL -RAPURA, SITAPURA EXT, JAIPUR, RAJASTHAN ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

VSM WEAVES INDIA (P) LTD SF NO.334, SANKARI MAIN ROAD KATTR, ELANTHAKUTTAI POST, NEAR PALLIPALAYAM, NAMAKKAL, TAMIL NADU-638008. NU LOCATION: SAME AS ABOVE

WEAVING & FINISHING COTTON 1706250.000 TEXTILES ON POWERLOOM MTRS

SHAKTHI KNITTING PRIVATE LIMITED FLAT#F-1, FIRST FLR, NEW#3, . FIRST MAIN ROAD, LAND MARVEL, INDIRA NAGAR, ADYAR CHENNAI,TAMIL NADU-600020 NU LOCATION: THANJAVUR, TAMIL NADU

READYMADE GARMENTS

535000.000 NOS

RSPL LTD., 119-121 BLOCK P&T, KALPI ROAD, FAZALGANJ, KANPUR, UTTAR PRADESH - 208012 SE LOCATION: JHANSI, UTTAR PRADESH

DETERGENT POWDER

90000.000 MT

SUPER SIGN INDUSTRIES PVC FLEX FABRICS 36000000.000 E-4, MANSAROVAR GARDEN, SQ. METRE 2ND FLOOR, DELHI-110015. NU LOCATION: 290, 292, 293, 296, 298 TEHSIL PARGANA, BHAGWANPUR, HARIDWAR, UTTARAKHAND ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NCM-JUNE 2017 33

PAGES EXECUTIVE

Name of Undertaking/Address & Location

Item of Manufacture

Proposed Annual Capacity

NEXT POLYMERS LIMITED SY. NO.274/2 & 275/2, SURANGI VELUGAM BY PASS ROAD, VELUGAM, SILVASSA, DADRA AND NAGAR HAVELI-396230. NU LOCATION: SAME AS ABOVE

NYLON (POLYAMID) 6/66 COMPOUNDS

3700.000 MT

DODHIA SYNTHETICS LIMITED. POLYESTER TEXTURISED 88000.000 UNIT NO.1001 FILIX BLDG. L B S MARG, YARN FROM POY/FDY M.TONNE NEAR ASIAN PAINTS, BHANDUP MUMBAI, MAHARASHTRA-400078. SE LOCATION: SY. NO.196, 206,207/1, TEHSIL VELUGAM, SILVASSA, DADRA & NAGAR HAVELI SAMOSARAN YARNS PVT. LTD. CUTTING & PACKING OF 7000000.000 PLOT NO.41, 42,LIBERTY BLDG. 2ND FLOOR CLOTH/WOVEN FABRICS METER NEW MARINE LINES, MUMBAI, MAHARASHTRA-400020. NU LOCATION: PLOT NO.2,GOVT.INDL. TEHSIL AMLI, PIPARIA, SILVASSA, DADRA & NAGAR HAVELI ANANYA HOSIERY PVT. LTD. A-337,GALI NO.10, SINDHU FIRM ROAD, MITHAPUR, BADARPUR, DELHI-110044. NU LOCATION: PLOT#1/424/28/29, MANSAROBER PARK,

MFG. OF OTHER KNITTED & CROCHETED APPAREL INCLUDING HOSIERY DELHI

170000.000 NOS

List Of Industrial Entrepreneurs' Production Memorandum (Textile & Allied Sectors) (Acknowledged From : 01/04/2017 to : 30/04/2017) NISHA DESIGNS MANUFACTURING OF READY 900000.000 86D-1, IIND STAGE, YESHWANTHPUR, MADE GARMENTS NUMBERS INDUSTRIAL SUBURB, BANGALORE (URBAN), KARNATAKA-560022 NU MEMORANDUM NO.: 412 DATE: 14/03/2017 PRODUCTION COMMENCED ON : 03/03/2017 LOCATION: ANANTAPPUR, ANDHRA PRADESH TATHASTU SPINTEX PVT. LTD. PREPARTION AND SPINNING 3600.000 SURVEY NO.157PA, TANKARA OF COTTON FIBER INCLUDING MTS LATIPAR ROAD, AT HIRAPAR BLENDED COTTON TANKARA, MORBI-363650. GUJARAT. NU MEMORANDUM NO.: 1134 DATE: 27/07/2015 PRODUCTION COMMENCED ON : 02/12/2016 KING YARNS PRIVATE LIMITED COTTON YARN 30 SNE 1682.000 BLOCK NO.2098/2/1, KIM-MANDVI RD, COMBED MT NEAR NAROLI, PATIYA,VILL.TADKESHWAR, MANDVI, SURAT, GUJARAT-394170. NA MEMORANDUM NO.: 677 DATE: 26/04/2017 PRODUCTION COMMENCED ON : 30/12/2016 LOCATION: SURAT, GUJARAT NOVOZYMES SOUTH ASIA PVT. LTD. MFG. OF INDUSTRIAL NOT KNOWN PLOT NO.32,47-50, EPIP AREA, WHITEFIELD ENZYMES TONNES GENISYS BUILDING, BANGALORE (URBAN), KARNATAKA-560066 OT MEMORANDUM NO.: 395 DATE: 10/03/2017 PRODUCTION COMMENCED ON : 28/05/2002 LOCATION: BANGALORE (URBAN), KARNATAKA NITIN SPINNERS LIMITED COTTON YARN 10000.000 16-17 KM STONE, CHITTOR ROAD, RAJASTHAN M.T. HAMIRGARH, BHILWARA, RAJASTHAN-311025 SE MEMORANDUM NO.: 1657 DATE: 18/11/2015 PRODUCTION COMMENCED ON : 29/03/2017 LOCATION: BHILWARA, RAJASTHAN

www.newclothmarketonline.com NCM-JUNE 2017 34

NCM-JUNE 2017 35

ANEES190@GMAIL.COM

JASHWANTH APPAREL INDUSTRIES PRIVATE LIMITED VADLAPUDI, D. NO.: 30-83-19/1, KANITHI, R H COLONY, VCARECCPL@GMAIL.COM

SKR APPARELS PRIVATE LIMITED UDYOG KENDRA-1 B-018 201308 GREATER NOIDA-GAUTAM BUDDHA NAGAR ANIL.GUPTA1789@GMAIL.COM

SRI VRUSHADHRI APPARELS PRIVATE LIMITED PUPPALGUDA,RAJENDERNGAAR PLOT NO 8,9 & 10 500089 HYDERABAD SVAADM11@GMAIL.COM

ZOLATA APPARELS PRIVATE LIMITED KORAMANGALA, 335, I MAIN, 7TH BLOCK, 560095 BANGALORE SUNDAR@NUMINOUSCONSULTING.COM

JBN APPARELS PRIVATE LIMITED LAJPAT NAGAR-II B-29, 1ST FLOOR 110024 NEW DELHI SANDEEPRISHI1971@GMAIL.COM

SCHWARTZ APPAREL PRIVATE LIMITED 16TH AVENUE GC 2 FLAT NO- 1070, PLOT NO GH03 201009 GREATER NOIDA (W) CASANKETROC@GMAIL.COM

SWISH BOSS APPARELS PRIVATE LIMITED 30 PATEL NAGAR OFFICE NO. 102, PHANSE AVENUE 452001 INDORE SIMRANLLP1@GMAIL.COM

SSDV APPARELS (OPC) PRIVATE LIMITED GOVIND MOHALLA, HAIDERPUR, SHALIMAR BAG PLOT NO. 27, KHASRA NO. 216, 965/218-219 110088 DELHI SSDV2017@GMAIL.COM

VISHISHTA APPARELS PRIVATE LIMITED NEAR PARIMAL SCHOOL, D CABIN 5, DEVBHOOMINAGAR-1 380019 SABARMATI NISHITHSHARMA2017@GMAIL.COM

ECCLESIASTES APPARELS (OPC) PRIVATE LIMITED PULAMON P.O,KOTTARAKKARA, CHANDRATHETHU, GOVINDAMANGALAM ROAD,SHAMMY777@LIVE.COM

BOOMS INDIA GARMENTS PRIVATE LIMITED NEAR SECTOR-3 102, NEW MAHABIR COLONY 125001 HISAR CASANJAYVERMA@GMAIL.COM

ARSALAN GARMENTS EXPORT PRIVATE LIMITED NEW AZAD NAGAR, HOUSE NO.2097, SHANTI NAGAR 421302 BHIWANDI-THANE

FLYING SQUIRREL GARMENTS PRIVATE LIMITED S N 29/1A/1, C WING, FLAT NO.16 GANESH 411041 PHATA, SINHAGAD ROAD PUNE UDAY.PHARTALE17@GMAIL.COM

DHARM BUILDCON AND GARMENTS PRIVATE LIMITED HAZIRA GWALIOR SHARMA SHADAN RANIPURA RAMNAGAR, CHAR SAHAR KA NAKA JAYENDRASHARMA15@GMAIL.COM

KMPS GARMENTS PRIVATE LIMITED ATALI ROOM NO. 404, VIRAT RESIDENCY, 421102 THANE KALEENTERPRISES0@GMAIL.COM

PROSPECTIVE GARMENTS PRIVATE LIMITED ATALI MAIN ROAD, PATIL CHAWL, 421102 THANE BALKRISHNAENTERPRISES46@YAHOO.COM

HIGH RISE TEXTILE (OPC) PRIVATE LIMITED JAYPEE GREENS WISH TOWN SECTOR-134 KLASSIC TOWER NO-KCA007, FLAT NO 105 201304 NOIDA RKAGARWALBR2@GMAIL.COM

WHIPZIP TEXTILE PRIVATE LIMITED KAHALGAON SADANANDPUR, BAISA 813222 KAHALGAON-BHAGALPUR PRATAPSURYAVANSHI108@GMAIL.COM

ARVENSE TEXTILES PRIVATE LIMITED KALINGA NAGAR PLOT NO-LIG-856, K-IV,KALINGA VIHAR 751003 BHUBANESWAR-KHORDHA NIBEDITANAYAK.TEXCONNECT@GMAIL.COM

VDN TEXTILE AND APPARELS PRIVATE LIMITED BEHIND JHULELAL MANDIR, ULHASNAGAR PUNJABI COLONY BARRACK NO 728 421003 THANE ARCHPRAVIN@GMAIL.COM

CHIEF TEXTILES PRIVATE LIMITED M.P ROAD 203, DATTA APT., DEVDOOT SOC., VIJAY SOC 421202 DOMBIVLI-THANE SUNILMALI01@GMAIL.COM

THUUKIRA TEXTILE PRIVATE LIMITED RAYANUR 21/3 THEERAN NAGAR 639009 KARUR PALANIYAPPAN.RAYANOOR@GMAIL.COM

PARWATIBA TEXTILE PRIVATE LIMITED NEAR LAJAMANI CHOWK, MOTA VARACHHA, 10, FLOOR 1 DHARAMJIVAN ROW HOUSE, 394101 SURAT DMSVILKIASSOCIATES@YAHOO.COM

SURANA POLYCOT TEXTILES INDIA PRIVATE LIMITED TAMBA KATA, C. S. NO. 232, SOMWAR WARD OFFICE NO. 1, DWARKASHIL TOWER, SARTHAKRSURANA@GMAIL.COM

MBS TEXTILES PRIVATE LIMITED CHANDRA NAGAR, TRI NAGAR 3067/224, GROUND FLOOR 110035 DELHI SHYAMAPOLYCOATSPVT.LTD@GMAIL.COM

FABLOK TEXTILES & FASHIONS INDUSTRIES PRIVATE LIMITED EXTNSION DHANSA ROAD NAJAFGARH 48 MNA BLOCK, GOPAL NAGAR, VIJAYCHAURASIA81@GMAIL.COM

New Textile & Allied Companies Registered with the Registrars of Companies in India (April 2017)

NEW COMPANIES

NCM-JUNE 2017 36

LAXMANRAMNANI1979@GMAIL.COM

SHWETLANA FASHIONS PRIVATE LIMITED VINAYAKA NAGAR, BAGALUR CROSS, IAF POST 167, SATHYAM HOUSE, 6TH MAIN, 560063 BANGALORE ASHWINIB94@YMAIL.COM

AIMBEE FASHIONS PRIVATE LIMITED PANCHYWALA 272, LIONS LANE 302034 JAIPUR BBSNGH7@GMAIL.COM

GLOBALSOURCE FASHIONWEAR PRIVATE LIMITED AVARANGADU THOTTAM,COLLEGE ROAD, 129,BABY COLONY, 641602 TIRUPUR VIJAY@GLOBALSOURCE.CO.IN

BETA FASHIONS INDIA PRIVATE LIMITED JHANDEWALAN EXTENTION 222-223, DDA OFFICE COMPLEX 110055 NEW DELHI SKB090909@YAHOO.CO.IN

JHA FASHION PRIVATE LIMITED CHANAKAYA PLACE, PART-II, UTTAM NAGAR PLOT NO.32, BLOCK-S, THIRD FLOOR 110059 NEW DELHI CAJHARK@GMAIL.COM

LALITA FASHION PRIVATE LIMITED LAXMIKANT ASHRAM RD, AMBATALAVDI, B-304, KRISHNA RESIDENCY,OPP SARJAN YUTH 395004 SURAT VIPUL8802DS@GMAIL.COM

HEADWAY FASHIONS & BUSINESS PRIVATE LIMITED HOUSE NO-401/F, NEHRU NAGAR MAA NIWAAS, CANIRAJ8582@GMAIL.COM

LABHESHWAR FASHION PRIVATE LIMITED NANA VARACHHA 15, MANINAGAR SOCIETY, 395004 SURAT BHIMJIBHAIVASOYA@OUTLOOK.COM

ABHI WOOLEN INDUSTRIES (OPC) PRIVATE LIMITED PANIPAT DABUR COLONY, ABHIIMPEXPANIPAT@GMAIL.COM

MELUHA SILK MILLS PRIVATE LIMITED BLOCK NO. 584/85/88, KAMREJ PLOT NO. 62, KUMKUM RESIDENCY 394185 SURAT, HIRENGEDIYA111@GMAIL.COM

NATURAL SILK DEVELOPMENT INDIA PRIVATE LIMITED LAJPAT NAGAR-I E-191, BASEMENT, INFO@NATURALSILK.IN

SRI SAHAJJHO SILKS PRIVATE LIMITED SALIGRAMAM NO.6,KAMARAJ STREET,SHANTHI NAGAR 600093 CHENNAI SRIMEHRO@GMAIL.COM

BHARALI SILK ROOT PRIVATE LIMITED CIRCLE-HAJO,MOWJA -PUB BANSAR DAG NO -1454, TALUKA-ADABOI, SUALKUCHI 781103 KAMRUP BHARALIDIPAK@REDIFFMAIL.COM

SOURABH SILK PRIVATE LIMITED AKURLI ROAD, LOKHANDWALA TOWNSHIP, E-1105/06 WHISPERING PALM XXCLUSIVES 400101 KANDIVALI EAST MUMBAI SOURABHSILK@HOTMAIL.COM

YK COTTON & GINNING MILL PRIVATE LIMITED SHIVAJI ROAD, GIRME CHOWK SHOP NO-34, CHANDRAROOP COMPLEX, 413709 SHRIRAMPUR-AHMEDNAGAR PRSHINDE207@GMAIL.COM

CURIO COTTONS PRIVATE LIMITED SG HIGHWAY, VEJALPUR, 503, ISCON ELEGANCE, 380015 AHMEDABAD KAMALPKESWANI@GMAIL.COM

GIZAN APPARELS INDIA PRIVATE LIMITED PARAPPANANGADI PO ASHRAF MANZIL , KPH ROAD 676303 MALAPPURAM SUPPORT@LEGACYPARTNERS.IN

ACANTHUS APPAREL (OPC) PRIVATE LIMITED SEHATPUR, AMARNAGAR 114,NEAR DURGA BUILDER 123001 FARIDABAD ARCHANATHAKUR773@GMAIL.COM

BHEENI APPARELS PRIVATE LIMITED SHAHPUR JAT A-111, 3RD FLOOR 110049 NEW DELHI JOYJIT.TALUKDAR@GMAIL.COM

DEICONIC APPARELS PRIVATE LIMITED KIRARI, BLK-B, PREM NAGAR, PHASE-3 26-A&B, KH. NO. 141&142, GROUND FLR 110086 NEW DELHI MOHITDIXIT17@GMAIL.COM

SAMRASA APPAREL PRIVATE LIMITED NEAR KANWAR NAGAR 56, TAL KATORA COLONY 302002 JAIPUR-JAIPUR

I-GLO APPAREL PRIVATE LIMITED RAJAGOPALAN 1ST STREET, VALMIKI NAGAR, OLD NO :5/1, NEW NO:3/1, 600041 THIRUVANMIYUR, CHENNAI SURESHARUNA@REDIFFMAIL.COM

SYN APPARELS PRIVATE LIMITED URBAN ESTATE P NO. 3, SECTOR- PV-1A 122017 GURUGRAM SNCINFO02@GMAIL.COM

ANTIMATTER APPARELS PRIVATE LIMITED SAMUNDIPURAM, GANDHINAGAR (PO), NO.2, A.V.M LAYOUT, 1ST STREET, 641602 TIRUPUR DWIJA@SOCRATEES.IN

KURVY APPARELS PRIVATE LIMITED BASEMENT, TUGHLABAD, EXT GALI NO 13 VED PAL RZ 484 110019 DELHI AJAINO02@GMAIL.COM

AJAAT APPARELS PRIVATE LIMITED CHANAKYA, PLACE-I,UTTAM NAGAR, NR. CHURH PLOT NO. E-2/71, FIRST FLOOR 30 FOOT 110059 NEW DELHI AMITYADAV5604@GMAIL.COM

CHAMPU APPAREL PRIVATE LIMITED SECTOR 9, ROHINI 19, KADAMBARI APPARTMENTS 110085 DELHI MCJABAKERS@GMAIL.COM

K-SPAB APPARELS PRIVATE LIMITED NAUBAD PLOT NO.-215&216, AUTONAGAR, OPP DIAMOND 585402 BANGALORE CS@SETINDIABIZ.COM

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NCM-JUNE 2017 37

CADS0711@GMAIL.COM

ZADAFIYA KNITFAB PRIVATE LIMITED 87, 1ST FLR, VARACHA ROAD, BHAT NI WADI SHIV SHANKER PARVATI,SY NO 363/4,PLOT 395006 SURAT ZADAFIYACREATIONSPVTLTD@GMAIL.COM

DAYZ KNITS & WEAVES PRIVATE LIMITED BHERA ENCLAVE, PASCHIM VIHAR 45-G/F B/P, 110087 NEW DELHI PRATEEK@DAYZFOOTWEAR.COM

SORATHIYA WEAVES PRIVATE LIMITED KAILASH DHAM SOCIETY MINAXI WADI KATAGAM R.S. 277 PLOT-28, GROUND FLOOR 395004 SURAT DMSVILKIASSOCIATES@YAHOO.COM

CORD WEAVTECH PRIVATE LIMITED 6 ROYAL PARK, KALAWAD ROAD 202 - ROYAL TOWER 360005 RAJKOT DHRUV.GHODASARA621@GMAIL.COM

WEAVERSKY PRIVATE LIMITED ORIENTAL SHOPPING COMPLEX, P O LINK ROAD 40/2360 (67/8639), 2ND FLOOR 682031 MERCHANTS ROAD, ERNAKULAM KALLELIL.LTD@GMAIL.COM

MODESTO WEAVES PRIVATE LIMITED VARACCHA ROAD 89 MANINAGAR, SIMADA NAKA NANA VARACHHA 395006 SURAT DARSHTEXTILEPVTLTD@GMAIL.COM

WEAVER SOUL PRIVATE LIMITED PLOT 283 & 284 ROAD NO 6 KAKATIYA HILLS FLAT NO 503 SRI KEERTHI APARTMENTS 500081 HYDERABAD SHRAVAN003@GMAIL.COM

DWARKAPATI SPINNING PRIVATE LIMITED KHAZOOR WALI GALI GHOOKNA CH NAUBAT SINGH 201001 GHAZIABAD SRKPG361@GMAIL.COM

FOARA DESIGNS PRIVATE LIMITED SECTOR-6, DWARKA B-601, SWAMI DAYANAND,CGHS, PLOT NO 5 110075 NEW DELHI AASHIANA704@GMAIL.COM

JOARDER FASHION PRIVATE LIMITED HARIPUR MELER MATH, 741404 SHANTIPUR-NADIA JOARDER.BHABATOSH@GMAIL.COM

RAMSHA FASHION PRIVATE LIMITED SISIR BHADURY SARANY, KHUDIRAMPALLY, 2ND FLOOR, BIJAY BHAWAN, 734001 SILIGURI-DARJEELING RAMSHA.FASHION2017@GMAIL.COM

AUMAMA FASHION PRIVATE LIMITED 11TH FLOOR, CUFFE PARADE, B 111, SEA LORD APARTMENTS, B WING, 400005 MUMBAI PAVITCHADHA@GMAIL.COM

CREATIX FASHION PRIVATE LIMITED J C INDUSTRIAL AREA, YELACHENAHALLI NO 39 GOVARDHAN GARDEN 560062 BANGALORE SAMPATHKUMARJ@SNEHACREATIONS.IN

EMAYA FASHION PRIVATE LIMITED ROHINI B7/31 VALLABH VIHAR SECTOR-13 110085 DELHI CONTACTJNIKHIL@HOTMAIL.COM

BRANDKATTA-LALI FASHION HOUSE PRIVATE LIMITED KOREGAON PARK, BHAIROBA PUMP S NO 31/2/F 334/335, REACHUS@LALIFASHION.IN

DAVE'S FASHIONISTAAN PRIVATE LIMITED EVERSHINE GLOBAL CITY, B/H YAZOO PARK 402, BLDG NO.8, AVENUE G, RUSTOMJEE 401303 VIRAR (W)-THANE DHIRAJ_DAVE009@YAHOO.CO.IN

H.S.R. FASHIONS PRIVATE LIMITED CHANDER NAGAR FF-110 DEVIKA TOWER 201011 GHAZIABAD-GHAZIABAD

AAUA FASHIONS (OPC) PRIVATE LIMITED MANI VILLA, FLAT NO 5B, 40/34 DIAMOND HARBOUR ROAD, 700038 KOLKATA AMAN31591@GMAIL.COM

ADNAF FASHION PRIVATE LIMITED NATIONAL FRUIT COMPANY CHAI GALI, JAINARAYAN ROAD, FANCY BAZAR 781001 GUWAHATI-KAMRUP FAUZIA.KHAN@ACSENTIALS.COM

CLEARLANE FASHIONS PRIVATE LIMITED BANJARA ARCHES, HORAMAVU 16, 3RD FLR, 2ND CROSS SAMRUDHI LAYOUT 560043 BANGALORE KRITHIKACSE@GMAIL.COM

WINKLE FASHIONS PRIVATE LIMITED VILL.POCHANPUR H.NEAR POL609, 110075 NEW DELHI BHATIA_2275204@YAHOO.CO.IN

VASVA FASHIONS PRIVATE LIMITED SECTOR-04, KHARGHAR,RAIGARH-410210 SHOP NO. 14, VAKRATUND CHS PLOT-38, 410210 PANVEL-RAIGARH BINUANTHAPPENN@GMAIL.COM

SANKRANTI FASHION PRIVATE LIMITED VASANT KUNJ, 2015, C-2, 110070 NEW DELHI SARITAMISHR@GMAIL.COM

CHUTNEY FASHION PRIVATE LIMITED LAYOLA GARDENS 54-16-4B, PLOT NO.35, 3RD CROSS ROAD, 520004 VIJAYAWADA GAUTHAMSAI18@GMAIL.COM

VRIDDHI FASHION (OPC) PRIVATE LIMITED NEAR DR.SUSHIL KUMAR STATION ROAD, GACHI TOLA 851101 BEGUSARAI AGANDHI215@GMAIL.COM

VANDA FASHIONS INDIA (OPC) PRIVATE LIMITED SECTOR-2, THANESAR 531, MONGA9977@GMAIL.COM

SURYANAGRI FASHIONHUB PRIVATE LIMITED B/S CHANDSHAH TAKIYA MARKET, SOJTI GATE GHODO KA CHOWK, HARIJAN BASTI 342001 JODHPUR RETURN.JODHPUR@GMAIL.COM

AKIRAMING FASHIONS (OPC) PRIVATE LIMITED SECTOR 46 PLOT NO. 837 122003 GURGAON DIVYA@AKIRAMING.COM

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ALDEMA EXPORTS PRIVATE LIMITED PANKHA ROAD, UTTAM NAGAR RZ-7, INDRA PARK 110059 NEW DELHI CSRAVISHARMA@GMAIL.COM

MSRS EXPORTS PRIVATE LIMITED HERPUR KHURD NEAR RANA GAS GODOWN, 141010 LUDHIANA SG_IDEAL@YAHOO.CO.IN

TEXTOCRAFT EXPORT INDIA PRIVATE LIMITED SECTOR-15, ROHINI, 31,MANAV VIHAR, PLOT NO.6 110089 NEW DELHI TEXTOCRAFT.INDIA@GMAIL.COM

GRANDSTITCH EXIM INDIA PRIVATE LIMITED RAGHUBAR PURA, GANDHI NAGAR GALI NO- 6B, 2753 110031 NEW DELHI RAJOOVERMA92@GMAIL.COM

E-TAILORING 99STITCHES.COM PRIVATE LIMITED NEAR PRIMARY GOVERNMENT SCHOOL,GANDIPET H NO 1-72, HYDERSHAKOTE RAHULREDDYT99@GMAIL.COM

VARSHNEY ALOK SUIT PRIVATE LIMITED RADHE KRISHNA TEXTILE MARKET, BEGUMPURA SHOP NO. 3144-45, ROW-C/1, 2ND FLOOR 395002 SURAT ALOKSUIT@GMAIL.COM

JAYPAL SUITS PRIVATE LIMITED NR. VIRVANI BROTHERS, PANCHKUVA, 212, FIRST FLOOR, GHANIRAMNI POLE, 380001 AHMEDABAD JASH.SUITS@GMAIL.COM

PURSUITX MANAGEMENT SERVICES (OPC) PRIVATE LIMITED HOSKOTE ROAD, WHITEFIELD P90, CHAITANYA SMARAN, KANNAMANGALA POST RISHEE95@GMAIL.COM

A-STAR BUTTONS & ACCESSORIES INDIA PRIVATE LIMITED SANGAM VIHAR H-16, HOUSE NO 1251, ROCCOMPLIANCETEAM@GMAIL.COM

50000 VOLTS TSHIRTS PRIVATE LIMITED ANJARAHILLS 6-3-248, F. NO. A-106 500034 HYDERABAD DILIPSHETTI@GMAIL.COM

VEREIN DENIM IMAGES PRIVATE LIMITED DSIIDC NARELA PLOT NO. 249 110040 NEW DEHI VDBAJARH@GMIL.COM

RGILRA DENIM PRIVATE LIMITED SHASTRI NAGAR C-213 311001 BHILWARA SUNIL.GILRA5@GMAIL.COM

ESHAN YARNS PRIVATE LIMITED NEAR NEELON BRIDGE, TEHSIL SAMRALA VILLAGE LAL KALAN 141113 LUDHIANA SANJEEVMAKKAR21@YAHOO.COM

HONEST YARN PRIVATE LIMITED DIST-SURENDRANAGAR AT NAVAGAM TALUKA -CHOTILA 363530 -SURENDRANAGAR FANIL@JSMPL.IN

VRISHABH YARN PRIVATE LIMITED NAIK MALA H. NO. 465/1/4 416115 ICHALKARANJI-KOLHAPUR AMRUTPARAKH@GMAIL.COM

CND YARN STOCK PRIVATE LIMITED NANDA PATKAR ROAD VILE PARLE (E) 22 2ND FLOOR SHARDA BHAVAN CTS 1740 400057 MUMBAI ANIL@COUNTNDENIER.NET

SRI VENKATESHWARA CLOTH EMPORIUM WHOLESALE AND RETAIL (OPC) PRIVATE LIMITED BETHEL NAGAR LAYOUT, K R PURAM BINDU.DUD@GMAIL.COM

EQUAL CLOTHING PRIVATE LIMITED GH-9, SECTOR-45 H NO-503, URJA VIHAR 121001 FARIDABAD SAURABH@LOGICUFF.COM

EMPRESS CLOTHING PRIVATE LIMITED SECTOR 40-A HOUSE NO. 725 160036 CHANDIGARH SIDHU.GUNEET@GMAIL.COM

LUXURY THREADS CLOTHING PRIVATE LIMITED VILLAGE NANGLOI H.NO. 321 110041 DELHI RAHULSHOX18@GMAIL.COM

TARSH CLOTHING PRIVATE LIMITED MAKWANA ROAD, MAROL, ANDHERI (E) 302, 3RD FLOOR, JAY ANTRIKSH, 400059 MUMBAI AKS2350@GMAIL.COM

KTD CLOTHES PRIVATE LIMITED BLOCK 1B,DEV NAGAR,TANK ROAD, KAROL BAGH 6187/1, FIRST FLOOR, GALI NO. 2/3, 110006 DELHI NITIN.TEXTILE@YAHOO.COM

SURK CLOTHING PRIVATE LIMITED MINI BAZAR, VARACHHA ROAD UG-3, CRYSTAL COMPLEX, SARDAR CHOWK 395006 SURAT SURBHI.KASHYAP9228@GMAIL.COM

PASHION CLOTHING PRIVATE LIMITED YERAWDA, FLAT NO.101, S.NO. 247/1, B K APARTMENT 411006 PUNE INFO@PASHIONCLOTHING.COM

KALAMKAARI LOOMS PRIVATE LIMITED CHENTHRAPPINNI XI/621, KOLANTHRA HOUSE, 680687 THRISSUR KALAMKAARITHEIMPRESSION@GMAIL.COM

SBB KNIT FAB PRIVATE LIMITED EAST OF KAILASH G-61, FIRST FLOOR, 110065 DELHI COTTONCONCEPTI@INDIATIMES.COM

D. S. KNIT INDUSTRY PRIVATE LIMITED ROOM NO. 408 2, JOGENDRA KAVIRAJ ROW 700007 KOLKATA GUPTAKMANOJ@REDIFFMAIL.COM

KAMESHWAR KNITTING PRIVATE LIMITED VILLAGE-LINDIAD, TALUKA- MANGROL H NO. 230-231, VASAVA FALIYU, 394530 SURAT RAVJIBHAI201@GMAIL.COM

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P V CLOTHING LLP PDINO 48-24-7),SUDHAMA NAGAR,“NO.7, 2ND CROSS,“560078 BANGALORE PVCLOTHINGLLP@GMAIL.COM

SHUTFAB CLOTHING LLP RENGKAI BIBLE HILL, “H.NO 547/ RK, FISHERY OUT“795128 CHURACHANDPUR NGURA.GRAPHIC@GMAIL.COM

TARROCK CLOTHING AND SERVICES LLP “MODI BAUG, SUDHIR PAWAR PATH, SHIVAJINAG“AR“161/A, PUNDARIK LAWRENCE.ARABIA@GMAIL.COM

FINCHWINGS CLOTHING LLP “ROOPANA AGRAHARA, HOSUR MAIN ROAD “NO.53/1, NEAR HERO SHOWROOM“560068 BANGALORE KV.JUBAIR.100@GMAIL.COM

SHREE GAJAVAKTRA APPARELS LLP “P.S. LAKE TOWN“37, GREEN PARK, BLOCK-A“700055 KOLKATA SGAPPARELS17@GMAIL.COM

SHRI SATTVA APPAREL LLP KAMLAPUR “C/O. MAHENDRA VEER VIKRAM SINGH“ 261302 SITAPUR IMPACT@SATTVA.CO.IN

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A Review of Fire Blocking Technologies for Soft Furnishings Shonali NazarĂŠ* and Rick D Davis National Institute of Standards and Technology, Engineering Laboratory, 100 Bureau Drive, Gaithersburg, MD 20899-8665, USA *

Correspondence: shonalisg@yahoo.com Abstract

Fire barrier fabrics are expected to play an increasingly important role in complying with existing and proposed soft furnishing flammability regulations in the US. The number of commercial fire blocking technologies is large in order to accommodate the vast requirements of the consumers, manufacturers, and regulatory agencies. Generally, highloft, nonwoven fiber battings are used in residential mattress applications, whereas coated or laminated textiles are more common in institutional and upholstered furnishing applications. Successfully achieving the desired level of fire protection requires appropriate matching of the barrier fabric to the desired characteristics of the soft furnishing. Barrier material selection for soft furnishings is generally a process of trial and error due to significant measurement science gaps. In 2009, the National Institute of Science and Technology and American Fiber Manufacturers Association held a workshop on fire blocking barrier fabrics for soft furnishings to discuss the past, present, and future state of the barrier materials in the US. This manuscript is based on knowledge obtained from the workshop and the subsequent knowledge gathered from literature and stakeholders. Several fire blocking technologies have been explored to reduce the flammability of soft furnishings by preventing or delaying direct flame impingement and heat transfer from the flames or molten polymer to the core components. While previous studies reported on use of fire barriers to comply with full-scale testing of soft furnishing items, they failed to report on assessment of barrier materials as isolated components. In addition to a few examples that demonstrate the complexity that makes a priori selection of fire barrier materials difficult, various fire blocking technologies are discussed in this report with respect to material type, fiber content, and fire blocking mechanisms. Potential test methods for characterizing barrier performance are reviewed. Future trends in fire blocking materials are also briefly described. The Part II of this paper will be published in the next issue. Keywords: Soft furnishings, Upholstered furniture, Barrier fabrics, Mattress, Flammability, Review, Regulations Introduction Fires in which a soft furnishing product is the first item ignited accounts for 5% of all U.S. residential fires annually, but are responsible for a disproportionately high fraction of fire losses (Hall 2008; Hall & Harwood 1989; Greene & Miller 2006; Ahrens 2008; Horrocks 2001; Bwalya et al. 2009). The goal of a number of current and proposed flammability regulations is to reduce these fire losses. Existing flammability regulations for soft furnishings mainly address upholstered chairs and mattresses. The approaches manufacturers have taken to comply with these regulations are fairly consistent. To comply with the

California Bureau of Home Furnishings and Thermal Insulation (BHFTI) soft furnishings flammability regulations (e.g., Cal TB 129 (Technical Bulletin 129 1992) and Cal TB 603 (California TB 603 et al. 1633) for mattresses and Cal TB 133 (Technical Bulletin 133 1991) for upholstered chairs), manufacturers use a combination of flame retardant (FR) foam, FR cover fabrics, and/or barrier fabrics. In the UK however, the requirements of furniture flammability regulation for domestic furnishings (Consumer Protection Act 1987) were mainly addressed by using flame retardant back-coated cover fabric in combination with filling materials, including PUF, which are required to pass stringent ignition NCM-JUNE 2017 42

criteria (Chivas et al. 2009). Currently, there is no federal flammability regulation for residential upholstered furniture in the U.S., but Consumer Products Safety Commission (CPSC) has now proposed a regulation CPSC 16 CFR Part 1634 that defines a smoldering and open flame metric for these products. To comply with the 1,634 open flame ignition test, it is anticipated that barrier materials will be employed in residential upholstered furniture. To comply with the recent CPSCâ&#x20AC;&#x2122;s mattress flammability (open-flame) regulation 16 CFR Part 1633(16 CFR 1633), the manufacturers are solely relying on barrier materials. In addition,

A Review of Fire Blocking Technologies for Soft Furnishings restrictions on flame retardants are increasing due to sustainability regulations (Chivas et al. 2009; European et al. 1907). Thus, fire barrier materials are expected to play an increasingly important role in reducing the fire hazard of soft furnishings. Other regulatory approaches include reducing risk of ignition through reduced ignition propensity cigarettes, reducing fire spread through residential sprinklers, and reducing the inherent fire hazard of fuel sources through lower heat release (HR) mattresses. Several fire blocking technologies have been explored to reduce the flammability of soft furnishings by preventing or delaying direct flame impingement and heat transfer from the flames or molten polymer to the core components. While previous studies (Fesman & Jacobs 1989; Damant & Nurbakhsh 1992; Eggestad & Johnsen 1987; Gallagher 1993; Damant 1996; Ohlemiller & Shields 1995) reported on use of fire barriers to comply with fullscale testing of soft furnishing items, they failed to report on assessment of barrier materials as isolated components. Very little is known about fire performance requirements of these barrier materials that are critical to complying with full-scale fire regulations for mattresses and upholstered furniture. Selection of barrier materials therefore becomes a process of trial and error due to significant measurement science gaps. Current test methods for barrier materials are based on pass/fail criteria and do not quantify barrier effectiveness. Fur thermore, successfully achieving the desired level of fire protection requires appropriate matching of the barrier fabric to the desired characteristics of the soft furnishing. In addition to a few examples that demonstrate the complexity that makes a priori selection of fire barrier materials

difficult, various fire blocking technologies are discussed in this report with respect to material type, fiber content, and fire blocking mechanisms. Potential test methods for characterizing barrier performance are reviewed. For more than 30 years, the Fire Research Division at the National Institute of Standards and Technology (NIST) has conducted research that has significantly contributed to the current understanding of soft furnishing flammability and the development of current standardized testing tools and methods (Ohlemiller & Gann 2002; Ohlemiller & Shields 2008; Ohlemiller 2008). In 2009, in order to facilitate the development of costeffective fire barrier materials, NIST began conducting research focused on developing validated tools that accurately measure barrier performance, enabling the understanding of the association of material attributes with fire blocking performance, and evaluating new fire blocking technologies. To start this new research focus, NIST and the American Fiber Manufacturers Association (AMFA) sponsored a Barrier Fabric Workshop with participants from manufacturing, government, and academic institutes. This review manuscript summarizes the landscape of barrier materials based on the knowledge gained from the workshop, extensive literature review, stakeholder collaborations, and research activities at NIST. Factors affecting flammability of soft furnishings A large selection of soft furnishings can be found in the marketplace, stemming from the wide variety of customer needs for functionality, aesthetics, and affordability. To meet these needs, manufacturers use a range of textile materials, including woven fabrics, knitted fabrics, and non-woven highloft battings. Upholstered products are NCM-JUNE 2017 43

available in a wide range of geometries, frame and support materials, and physical construction types. It is not well understood to what extent any of these variations impact the fire hazard of soft furnishings. NIST is currently conducting research to address these knowledge gaps (Reduced risk of furniture fire hazard 2999). Even though the function, construction, geometry, and materials used in soft furnishings differ, there are a few general similarities with respect to their flammability. For example, all soft furnishing products have a supporting frame, cushioning layers, and an outer covering fabric; each of which is generally flammable to some extent. Fiber chemistry has a strong influence on the flammability behavior of a given component. For example, upon exposure to an ignition source, the outer covering fabric could ignite, char, or melt. The formation of a smoldering char may cause localized heating of the underlying components, resulting in thermal degradation of the foam and the release of volatile gases. These volatiles can ignite and support sustained flaming until all the combustible materials have been consumed. Flammability processes can be improved by preventing or delaying the ignition process using a technology that prevents thermal penetration (e.g., fire barrier material) or more thermally stable cushioning material. A melting covering fabric is another potential alternative to prevent ignition if the melting fabric selfextinguishes as it shrinks away from the ignition source. This requires a low heat release with no other easily ignitable materials on the surface. This route can be desirable to manufacturers since many lower cost fabrics have this â&#x20AC;&#x2DC;melt-shrinkingâ&#x20AC;&#x2122; characteristic. Since this type of covering fabric provides resistance against smoldering ignition but not against open flame, other fire retarding technology will be necessary (e.g., barrier materials and/or FR foam).

A Review of Fire Blocking Technologies for Soft Furnishings The fabric design and construction can also impact the flammability of soft furnishings. For jacquard woven fabrics, the design can affect the peak heat release rate (PHRR) even if the basic yarn composition within the fabric remains unchanged. For example, design patterns with large motifs may have different burning characteristics than those with small motifs (Horrocks et al. 2001). This is extremely important as the PHRR is often a critical performance metric for soft furnishing standards/regulations.

surface area, air permeability, etc.), the manufacturing process (e.g., catalyst type and concentration), and PUF flammability (in both smoldering and open-flame performance). Knowledge gaps also include the flammability of other fill materials used in modern furniture. Loose-fill materials such as shredded PUF, “slickened” polyester fiber, and expanded polyurethane beads could be even more flammable than the typical PUF. These knowledge gaps are currently being addressed at NIST (Gann et al. 2011).

One of the approaches to prevent heat transfer through the fabric (to the highly flammable foam core) is to use “pile” fabric structure that have raised fibers on the base fabric. Ignition of pile fibers creates what is called “surface flashing”, which is a very rapid spread of flames across the surface of the soft furnishing due to the easy ignitability and rapid consumption of these fibers. With low heat generating fibers, the flame spreads rapidly and consumes the raised fibers without igniting the base fabric. Pile or velvet fabrics are examples of such materials commonly used in residential upholstered furniture.

Mattresses and upholstered furniture represent distinctly different fire threats due to variations in their construction geometries and usage. In developed countries, where fire incidences are systematically recorded, the residential fire fatality statistics are dominated by these two product categories of soft furnishings, which are separately discussed below.

Although a flexible polyurethane foam (PUF) core is common in both mattresses and upholstered furniture; other filling materials are also quite popular (e.g., cotton battings, polyester fiber battings, expanded polystyrene beads, feathers, and downs (fine feathers)) (Paul et al. 2004). Compliance with flammability regulations is often achieved by preventing PUF from being exposed to heat and/or flame, as the fire hazard can significantly increase once PUF is ignited (Ohlemiller & Shields 2008). The flammability and flame retardancy of PUF has been well studied and widely reported (Krämer et al. 2010; Chattopadhyay & Webster 2009; Lefebvre et al. 2004; Levchik & Weil 2004). However, there is still a lack of fundamental understanding of the relation between PUF attributes (e.g.,

Mattresses A mattress set essentially consists of three main components: a frame, foundation and mattress. Mattresses are classified by the support system, which can be an innerspring, solid PUF, cotton batting, air or water. A typical innerspring mattress, which accounts for nearly 80% of the U.S. market, is covered by a comfort layer on one side for single-sided mattresses or on both sides for double-sided mattresses. The comfort layer is divided into three sub categories: cushioning layer, insulator and quilt. The quilt is the top layer of the mattress and is constructed of the ticking (the outer cover fabric of a mattress) and a low density PUF or fiber batting laminated or stitched to the underside of the ticking. The insulator and the cushioning layers may be stacked in varying sequences between the quilt and the innerspring support. The insulating layer is often a light-weight, low density nonwoven batting (or layers of nonwoven fabrics), whereas the cushioning layer may include flat or convoluted PUF, NCM-JUNE 2017 44

shredded pads of compressed polyester, or fiber battings. Contributions to flammability The flammability of a mattress depends on each of the components described above, along with the possible synergism or antagonism that may exist among component materials (Nurbakhsh & Mc Cormack 1998). This section briefly describes some of the factors that have impact on mattress flammability and the severity of bedroom fires in general. A more detailed review of mattress construction and materials as they relate to flammability regulations and testing is under preparation (Nazare & Davis 2011). Contributions to flammability: construction Mattress flammability is significantly impacted by its construction. The fuel load of a solid PUF core mattress is significantly greater than that of an innerspring mattress with similar filling material. Intuitively, the fuel load would be expected to be an important factor in determining the fire performance of the mattress set. However, this assumption may only be partially accurate, since an innerspring mattress filled with melamine-type foam has been shown to result in higher heat release rates than a solid core mattress of the same size filled with similar melamine-type foam (Damant & Nurbakhsh 1992). This may be attributed to the reduced air flow within the more closed structure of the solid core mattress, which limits heat release and fire growth, whereas the open structure of the innerspring allows air to flow freely. In the latter case, pyrolysis is limited only by the types of materials used in mattress construction. Contributions to flammability: tickings The most common tickings used in current mattresses are pile fabrics, knits, and jacquard woven fabrics. With

A Review of Fire Blocking Technologies for Soft Furnishings an increased focus on allergies, physiological comfort, and fire safety, a variety of functional coatings (e.g., water-proof, anti-bacterial, anti-fungal, and/or FR finishes) are now applied to mattress tickings. The majority of modern ticking materials have a high polypropylene and/or polyester fiber count, with the fiber content varying significantly with the fabric structure and design pattern. These tickings are highly flammable, but are not necessarily a greater fire threat, as these synthetic fabrics tend to melt away from the ignition source and selfextinguish. Cotton tickings are often considered “sacrificial”, as they pyrolyze quickly and generate low heat, thereby resulting in little heat transfer to the inner layers of the mattress. While cotton, polyester and polypropylene fibers dominate the ticking industry, blends of luxury fibers (e.g., wool and silk) are becoming more prevalent.

Wool and silk are inherently low flammability fibers. Fibers made from renewable resources (e.g., corn, soybean and bamboo) are also gaining popularity as more environmentally friendly alternatives. Viscose rayon derived from bamboo is of particularly high interest because of its inherent anti-bacterial and antifungal proper ties and its good breathability and moisture absorption (Ticking 2005). However, very little is known about the flammability of these ‘green’ alternatives.

Quilting patterns are very common in mattresses. While quilting imparts more cushioning and insulation by creating large air pockets within the quilted structure, the quilting pattern itself also impacts the burning behavior. When tested under the cone calorimeter, composite specimens with quilted tickings exhibit slightly higher total heat release rates (THR) values as compared to nonquilted ticking specimens (Fritz &

Hunsberger 1997). One of the probable reasons for this kind of fire performance is that flame spread in quilted specimens is slower. The quilted material therefore burns slowly but completely to give higher THR values. Contributions to flammability: interaction with nearby items The mattress is only one of many contributing products dictating the magnitude of a bedroom fire. A bedroom frequently contains a bed covered with bedclothes (e.g., blankets, sheets, dust covers, and pillows), carpet, draperies, other furniture, and items that may be found both on and adjacent to the bed (e.g., toys, stuffed animals, and clothes). The purpose of requiring a conservative heat release metric for mattresses is to reduce the probability of a mattressinitiated fire spreading to other components in the room or a fire on one of the other items in the room igniting the mattress. Ultimately, the degree with which a mattress becomes involved and the severity of the fire will depend not only on the flammability of the mattress, but also on the flammability of other items on and near the bed, which may or may not have to meet flammability requirements. For example, a recent study showed that the bedclothes, including sheets, comforter and blanket, on a queen size or larger mattress set are sufficient to take a standard room to flashover (>1,000 kW HRR) (Ohlemiller & Gann 2003).

To date, there are no US federal flammability regulations for bedclothes. Upholstered furniture Upholstered furniture is available in various styles, sizes, geometries, constructions, and materials intended to provide the consumer with the appropriate balance of function, aesthetics, comfort, durability, and cost. Predicting flammability of upholstered furniture is extremely difficult because of insufficient NCM-JUNE 2017 45

knowledge on how these variations in materials and design interact synergistically or antagonistically to influence flammability. Our current understanding of the relationship of upholstered furniture design parameters to flammability is primarily based on an extensive research project completed two decades ago (Sundström 1995). Contributions to flammability: design (or construction) Depending on the design, and regardless of the amount of combustible material used, fire growth may be affected by the presence or absence of features such as gaps between major upholstered areas, armrests, tufting, welt cords, and open loop arms. As measured using Cal TB133, a separated seat and back generally results in a lower HRR, because the back may not become involved in the fire (Sundström 1995; Grand et al. 1994; Damant & Nurbakhsh 1994). Also, chairs with large gaps between the seat and the back are generally of a more functional design and contain less fuel. On the other hand, chairs with a separated seat and back provide a gap through which the flames from an intensely burning seat can readily reach the back support and accelerate flame spread. Upholstered chairs with no gap between the seat and the back generally contain more fuel and flames remain confined within the structure, thereby assisting fire growth. More luxurious upholstered chairs with armrests present a greater fire hazard, primarily due to the greater amount of flammable material and secondarily because the armrests can facilitate more radiative feedback to the seat, which can result in intense burning. The effect of tufting and welt cords depends on the type of combustion. In the case of smoldering fires, tufting and welt cords act as significant heat sinks, whereas for flaming combustion they act as flame arrestors. Upholstered furniture in which the

A Review of Fire Blocking Technologies for Soft Furnishings upholstery is close to the ground (e.g., furniture with dust covers or short legs), result in rapid fire development and high HR values (Grand et al. 1994). This is especially true if the furniture materials generate molten polymer drips (e.g., PUF and some thermoplastic fabrics), as this may result in pools of molten/degraded polymer that can easily ignite to form a pool fire, which can accelerate burning. Contributions to flammability: cover fabrics Unlike mattresses, where the ticking fabric is more of an afterthought, for residential upholstered furniture the cover fabric is critical to the consumer since it is primary component with aesthetic attributes. To satisfy the large breadth of consumersâ&#x20AC;&#x2122; preferences, the cover fabric for a given design may be available in a large variety of materials, patterns, and colors, each of which impacts upholstered furniture flammability (Ohlemiller & Gann 2002; SundstrĂśm 1995; Forsten 1994; Damant et al. 1983; Memorandum to D 2004; Coles 2000). For example, the European study, the Combustion Behavior of Upholstered Furniture (CBUF), showed that the cover fabric is the controlling element in small open flame ignition (e.g., from a candle) of upholstered furniture (SundstrĂśm 1995). Since the completion of the CBUF study, covering fabrics have changed significantly. This is expected to impact upholstered furniture flammability (Coles 2000; Damant 1995). Modern fabrics are generally constructed of blends of thermoplastic and regenerated cellulosic fibers, which are known to provide better durability and aesthetics, but in some cases, at the expense of flammability. Ohlemiller (Ohlemiller & Gann 2002; Ohlemiller & Shields 2008) observed that some thermoplastic fabrics, depending on fabric structure, may split open thereby enabling the underlying components such as PUF and

polyester wrap to participate in the fire. This resulted in a rapid increase in HRR and fire growth. To mitigate the increased flammability caused by these covering fabrics, fire blocking technologies were used in this study to delay ignition of the underlying components, thus allowing thermoplastic fabrics to be used while still complying with flammability regulations (Ohlemiller & Gann 2002). Fire blocking technologies for soft furnishings The purpose of fire blocking technologies is to reduce the flammability of soft furnishings by preventing or delaying direct flame impingement and heat transfer from the flames or molten polymer to the core components. In addition to fire/flame resistance, other desirable properties of fire blocking materials include good handle and drape properties (which impact comfort), durability to wear and tear, cleaning, etc. (which impact service life), and neutral color (which may impact covering fabric appearance, especially for materials under white mattress tickings). As indicated earlier, the flammability behavior of soft furnishings is exceptionally complex because of the large number of variations in materials, construction, and geometries. As a component of a consumer product, fire blocking materials must be costeffective and not negatively impact the aesthetics, comfort, and durability of the soft furnishings. The number of fire blocking technologies (woven and nonwoven fabrics, FR coatings, and FR PUF) available is quite large to accommodate the requirements of consumers, manufacturers, and regulatory agencies. FR Mechanisms: passive and active modes Fire blocking technologies operate by two broad, not mutually exclusive modes: passive and active (Nurbakhsh & Mc Cormack 1998). As the term suggests, passive fire barriers are predominantly non-reactive and do not NCM-JUNE 2017 46

become chemically involved in the flames. Their effectiveness derives from serving as a physical and/or thermal barrier between some or all of the fuel and the potential ignition source. These passive technologies prevent or delay the ignition of interior cushioning materials; however, they do not prevent burning of the outer cover fabric. Passive fire barriers are usually made from inorganic or inherently fire resistant organic fibers. Inherently fire resistant fibers used in this technology have high heat capacity and undergo an endothermic phase change in the presence of heat.

Active fire barriers have a chemical effect on the fire. Active barrier materials, not only prevent the ignition of interior cushioning material but can extinguish the flames from the ignition source and prevent the outer upholstery from burning. The chemical activity of active fire barriers can be in condensed phase (enhanced char formation), gas phase (flame suppression, flame quenching and/or intumescence) or both. They can suppress the flames from the ignition source, prevent the outer upholstery from burning, and prevent the ignition of interior cushioning material by forming char barrier. This essentially lowers the temperatures in a fire and reduces the generation of harmful smoke and gases (Damant 2009). Active technologies generally use combinations of fibers and/or coatings of fabrics, or PUFs with gas-phaseactive FR for flame suppression or quenching. In general, passive technologies are good inhibitors of smoldering combustion, whereas active technologies suppress flaming combustion by altering either decomposition or oxidation reactions (Wakelyn et al. 2005). Barrier fabrics Barrier materials are usually textiles that take the form of either an individual component or a layer within a composite of laminated layers.

A Review of Fire Blocking Technologies for Soft Furnishings Table 1: Examples of commercially available barrier materials for soft furnishings

Depending upon the type of barrier material selected, a double upholstery process may be required. However, the use of a barrier material may facilitate the exchangeability of outer cover fabrics.

between the exterior cover fabric and the first layer of the cushioning material in the furnished article. In order to meet specific flammability standards, more than one fire blocking technology may be used (Eggestad & Johnsen 1987).

Where barrier materials are not used, fire performance may be drastically affected by generic changes, cover fabrics, and other furniture components. In addition, the use of barrier material may result in other trade-offs. For example, highly FRâ&#x20AC;&#x201C;and more expensiveâ&#x20AC;&#x201C;cushioning materials may not be required. Also, FR treatments of cover fabrics may be unnecessary where appropriate fire blockers are used.

In general, barrier materials must conform to three different performance criteria: stability, integrity and insulation (Babrauskas 2009). Stability implies that the barrier construction remains, more or less, intact when exposed to a fire or heat source (minimal shrinkage and hole formation). Integrity implies that the barrier material prevents easy pass-through of flames, heat, and volatiles (either through the barrier material itself or its char).

Placed on the surface or between components, barrier materials limit the product involvement in a fire by preventing and/or significantly delaying the ignition of a cover fabric and core materials, lowering the heat release rate, reducing the rate of flame spread and/or extinguishing the flames (Damant 1996; Schumann & Hartzell 1989; Damant GH. et al. 1994). Often these barrier materials are placed

Insulation refers to a minimal change in temperature of the unexposed face due to heat transfer through the barrier material. Minimal char shrinkage and retention of non-zero char tensile strength are other key factors in good fire resistance. The barrier properties of a textile mainly depend on the fabric structure, the yarn construction, and the physical NCM-JUNE 2017 47

and chemical structure of the char resulting from a fire. The chemical and physical structure of the char determines the resistance to char oxidation. The fabric structure also determines the degree of air entrapment in the char. It is the char that often serves as the actual barrier between flames and the vulnerable contents of a soft furnishing product. Such chars are prone to oxidation during flame exposure, which effectively erodes the barrier, giving it a finite period of protection. This protection period depends on the nature of the organic fiber, minor contaminants in the fiber, the char mass per unit area and the temperature at which the char is exposed (Horrocks 1996). Barrier fabric types As mentioned earlier, barrier materials used in soft furnishing applications are found in various forms. Generally, highloft, nonwoven fiber battings are used in residential mattress applications, whereas coated or laminated textiles are more common in institutional and upholstered

A Review of Fire Blocking Technologies for Soft Furnishings furnishing applications. Types of barrier fabrics used in soft furnishings are mainly influenced by end user applications and cost. Structure, thickness, area density, and fiber blends of commercially available barrier materials used in soft furnishings are provided in Table 1. In this section, various fire blocking technologies are discussed with respect to material type, fiber content, and fire blocking mechanisms. Woven barrier fabrics Woven fabrics are generally more robust compared to their non-woven and knitted forms. One of the most important requirements of the upholstery manufacturing process is the stitching or sealing of the edges. For the barrier fabrics to be more efficient, the seams and stitches should remain intact even when exposed to thermal and mechanical stresses. This aspect of barrier fabrics is discussed in greater detail in the following Sections. Structure Woven fabrics have good mechanical properties and retain dimensional integrity even when exposed to heat and/or flame. The interlacing structure of warp and weft holds the decomposition products in place and eliminates the physical shrinkage of char. However, for openweave structures in barrier applications, the volatile gases from the heated PUF can easily find their way towards the flame, resulting in sustained burning. The situation is worse when the cover fabrics are thermoplastic, as the molten thermoplastic penetrates through the open weave structure and ignites the PUF core. For woven barrier fabrics to be effective, they must have a heavyweight construction (e.g., 300 g/m2 ), as the higher density fabric can prevent escape of pyrolysis gases and/ or penetration of molten polymer (Ohlemiller & Shields 1995). The trade off is that higher area density and heavier weight can negatively impact

the handle and drape properties, thereby affecting the formability, aesthetic, and comfort properties of the upholstered product. High performance char forming fibers In addition to fabric construction, fiber type is also critical to the attributes of barrier materials. Inherently fire resistant fibers (e.g., fiberglass, aramids, melamines, polybenzimidazole (PBI), novoloids, pre-oxidized polyacrylonitriles and carbon fibers) are char forming fibers with high mechanical strength (Bourbigot & Flambard 2002) that can be used for manufacturing barrier fabrics. Fabrics constructed from these inherently flame retardant fibers are expensive, and they are frequently used in high-performance applications (e.g., aircraft seating, seating in other mass transport vehicles and public buildings). Fire barrier fabrics constructed of fiberglass are very effective at preventing an ignition source from reaching the PUF core, as the fiberglass is a high char-forming fabric with strong structural integrity (US Patent Application 20070161312 Fiberglass fire barrier for mattresses. Filed on January 11 2006). Fiberglass fabrics (woven, knitted or non-woven) are often used as substrates for FR coating or laminating FR layers. The disadvantage associated with fiberglass flame barriers is poor durability (due to glass-toglass abrasion) and lack of resiliency (Dry et al. 2006). Fiber blends The main disadvantage of inherently FR fibers is their cost. To reduce fabric cost and still maintain performance, manufacturers construct fire barrier fabrics as blends with other lower cost fibers. Fiber blending may occur before or during yarn formation stage. The less expensive thermoplastics polymers are not ideal candidates for barrier materials. Barrier materials made solely NCM-JUNE 2017 48

from thermoplastic fibers often melt, shrink, and crack open (Ohlemiller & Shields 1995). Once there are openings in the barrier material the flames propagate to the PUF core, and the soft furnishing will burn as if there was no fire barrier. However, this melting can provide an advantage if the thermoplastic is combined with a network support fabric (e.g., fiberglass matting or any char forming fiber fabric), as the thermoplastic can fill the voids of the network and thereby form a strong and durable fire blocking system (Ohlemiller & Shields 1995). Another alternative is to use FR thermoplastic fibers in conjunction with non-thermoplastic char forming fibers or thermoplastic fiber fabric backcoated with a char forming FR coating. Natural fibers Barrier materials constructed of natural fibers (e.g., cotton) often produce a fire blocking char upon exposure to heat and/or flames. Cellulosic fabrics require chemical treatment (e.g., boric acid) in order to yield excellent fire resistance. FR treatment can be applied to the final fabric as a coating, or FR chemicals can be introduced during fiber formation to alter the polymer structure (e.g., FR rayon fiber with polysilicic acid backbone). The FR rayon is generally used in upholstered furniture applications when combined with modacrylics, aramids, and wool fibers. For mattress applications, FR rayon fibers are usually blended with polyester fibers to form highloft battings. When exposed to heat, the FR rayon decomposes endothermically and forms a silicate-containing protective char (Horrocks 1996). The low melt polyester fiber melts holds the protective char in place (Dennis ML 2999). Core spun yarn Another fire blocking technology uses core spun yarn to produce barrier materials. Core spun yarn (also known

A Review of Fire Blocking Technologies for Soft Furnishings as core-sheath yarn) begins with an inherently fire resistant fiber core (e.g., glass). This core is then coated with a less expensive material (e.g., polyester) that is primarily responsible for the aesthetic and comfort properties. The thermally stable core maintains the structural integrity and provides a woven framework (grid) for the char layer (lattice) formed by the thermal decomposition of the sheath fiber. This type of “grid/lattice” structure provides the physical barrier that prevents flame penetration into the more flammable cushioning layer as discussed earlier. The composition of the core and sheath can be tailored to satisfy fabric performance requirements. For example, to further improve fire resistance the sheath layer may contain FR, and to improve strength and durability a polyester or polyamide sheath may be used instead of a cotton or polypropylene. Beside barrier fabrics, the core spun yarn may also be used as sewing thread in upholstery. FR coatings on woven barrier fabrics or cover fabric Another approach to improve the fire resistance of a woven fabric is to apply an FR coating to the outer cover fabric or fire barrier fabric. These coatings are attractive to the manufacturer as they can be applied to almost any fiber/fabric type. FRtreated fabrics only retard or delay the spread of flames as long as treatment chemicals are retained in the fabric. FR protection may be lost due to wear and tear. Some FR-coated barrier materials are functional for a short time but have serious drawbacks, including separation of the coating from the knitted substrate followed by balling up under the upholstery fabric and complete disintegration over a short period of time (Anon 2999). Coating placement If the FR coating is applied to the inside face of the cover fabric as a backcoating, there may be little impact to the fabric aesthetics. However, when applied to the outside face or to both

sides of the cover fabric, the fabric color, feel, and stiffness may be significantly altered. Although the aesthetics of laminated/coated fabrics may not be as desirable, these fabrics are often used to comply with the more stringent high occupant dwelling flammability regulations (e.g., Cal TB 133, Cal TB 129). In the UK, backcoated FR cover fabrics are considered to take about 80% of the soft furnishing market (Horrocks et al. 2007). While FR coated cover fabrics self-extinguish and exhibit limited flame spread, they do not perform well when exposed to large ignition sources even for a short duration as they have a tendency to form brittle chars that crack open and expose the more flammable core materials. Research has shown that FR backcoating improves resistance to small flames like match and BS: Crib 5 (17 ± 1 g of wood), but when tested with large ignition sources as in Cal TB 133 or CFR 1633, the increased heat release of the backcoating results in accelerated thermal decomposition of the underlying PUF (Gallagher 1993). As discussed previously, it is these types of unexpected interactions between the components resulting in a synergistic or antagonistic impact on pyrolysis that makes it difficult to predict soft furnishing flammability based on the flammability characteristics of the individual components.

A halogen-containing polymer, combined with vinyl fluoride and finely dispersed antimony oxide, is commonly used for heavily used applications such as healthcare mattresses and mass transportation seating because it is significantly more difficult for the halogen to leach out when it is bound to a polymer rather than as a small molecule additive (Nazare 2009). A drawback limiting this application is that halogenated polymers often require a plasticizer and softening agents during processing, which can result in antagonistic reactions with other components of furniture (Schumann & Hartzell 1989) and itself may be a fuel for pyrolysis. Moreover, halogen and antimony containing molecules in backcoating formulations are of major environmental concern and this is currently driving changes in backcoated FR textiles. Other flame retardant strategies that have been explored for FR textiles include removal of heat by using compounds that undergo endothermic phase change and generate water upon heating (e.g. aluminum trihydrate, inorganic and organic phosphorus compounds), decreased formation of flammable volatiles and enhanced char formation (phosphorus- and nitrogencontaining compounds) (Horrocks 2001). Recent developments in backcoating technologies for FR textiles have been reviewed in details elsewhere (Horrocks 1996; Horrocks 2008a).

Composition

Composite barrier fabrics

A typical FR backcoating formulation used for upholstered cover fabrics consists of FRs (typically halogenantimony-containing compounds), fillers, synergists and application ancillaries (e.g., polymeric resin binder, fabric softeners, and cross linking agents). Halogen-antimony FRs are most frequently used because they are very effective for both synthetic and natural fiber containing fabrics and have relatively low cost (Weil & Levchik 2008).

Barrier materials created by bonding a highly fire resistant “layer” to one of the textile components are also commonly used in upholstered furniture. Bonding is generally accomplished by mechanical processes such as stitch bonding or needle punching, or thermal (heat bonding) processes. Adhesives can also be used for laminating various layers of barrier fabrics.

NCM-JUNE 2017 49

Composite or laminated fabrics offer two advantages. First, they eliminate

A Review of Fire Blocking Technologies for Soft Furnishings the labor involved in sequential upholstering of fabric layers, and second, they prevent exposure of underlying cushioning materials by â&#x20AC;&#x2DC;crackopeningâ&#x20AC;&#x2122; . When the multi-layered barrier fabric is exposed to flames, the heat is taken away by the outer coating or layer of the composite fabric, leaving the underlying substrate to which the coating or outer layer is laminated intact and preventing the involvement of underlying cushioning materials in the fire. For example, when a glass fiber fabric coated with polyvinyl chloride is exposed to flames, the polymer does not shrink away from the underlying glass fiber fabric. Instead, it softens and flows into the interstices of the glass fiber fabric. Laminated/coated fabrics eliminate the air space between the layers of barrier fabric and maintain the aesthetics of the exterior fabric while still providing better fire performance (Schumann & Hartzell 1989; Decabromodiphenylether 2005). Another example of a fire resistant laminated fabric is an aluminum foil liner constructed of a very thin layer of aluminum sandwiched between a woven fiberglass and spun fiberglass. Since these types of barrier fabrics are quite thin and flexible, they do not impart stiffness to the upholstered product when placed between the fabric and the filling. Thin layers of FR PUF laminated or backcoated onto various textile substrates are in use as fire barriers in mattresses and upholstered furniture. Their major drawback is cost, as they can be an order of magnitude more expensive than other fire blocking technologies. Multilayered barrier fabric structures comprised of fabrics made from layers of structural char-forming, heatabsorbing and inherently fire resistant fibers have also been suggested (Small & Walton 2007; Ma 2007). Such multilayered structures have fewer open cracks and holes when exposed to open flames. Nonwoven barrier materials Nonwoven fabrics are low density

fabrics characterized by a high ratio of thickness to weight per unit area (Parikh et al. 2003). Intermingled fibers are compressed or densified by the process of either needle-punching, stitchbonding or thermal-bonding. The term nonwoven is used in the textile manufacturing industry to denote fabrics that are neither woven nor knitted. Nonwoven barrier materials are generally less expensive than woven and knitted barrier fabrics. However, disadvantages associated with their manufacturing techniques, such as uneven blending, regions with uneven area density etc., affect their performance as barrier materials. Nonwoven materials typically lack strength (tensile and bursting) unless densified or reinforced by a backing. Due to their structural characteristics, nonwovens also have challenges associated with their mechanical performance and thermal shrinkage when exposed to heat. Thus, good quality control measures are critical during manufacturing. Loft The weight or thickness of a nonwoven fabric is reported by a term called loft. Highlofts have low density with a greater volume of air than fiber. Generally, highlofts with a thickness ranging from 7 mm to 51 mm and a basis weight of 75 g/m2 to 375 g/m2 are preferred for soft furnishing applications. When exposed to an open flame ignition source, highloft barrier materials containing charforming fibers form a thick char that blocks the flow of oxygen and volatile decomposition gases and also slows heat transfer by creating an effective thermal insulation barrier (Hendermann & Bridges 2006). Highloft high porosity structures also inhibit flame spread. An alternative to a highloft material is compressed layers of a flame retardant nonwoven material that expand when exposed to heat and provide a thermally thick barrier (Weil & Yang 2008). NCM-JUNE 2017 50

Fiber type Nonwoven battings/barrier materials of inherently fire resistant fibers and natural and/or synthetic fibers have been reported (Horrocks 1996; Hendermann & Bridges 2006; Shanley et al. 1994; Mater 2007; Hendermann 2004; Horrocks et al. 1994). These blends are designed to withstand extended periods of exposure to open flame and to prevent the underlying materials from igniting. The proportion and the type of fire resistant fibers used depend on balancing cost and flammability performance of the soft furnishing. In addition to the cotton and typical synthetic polymers already discussed (e.g., polyester), battings have also been constructed using other natural fibers such as flax, jute, hemp and wool, but their use has been limited by difficulties in processing (Flambard et al. 2002; Kozlowski et al. 2002; Kozlowski et al. 1999; Flambard et al. 2005; Knoff & Hall 2006). Cotton treated with boric acid Nonwoven cotton battings treated with boric acid have been used for many years as fire barriers in soft furnishings products, especially mattresses (Wakelyn et al. 2005). These materials are the least expensive FR barrier materials available on the market, since they usually contain cotton fibers that are procured from textile mills as by-products or waste products. Boric acid catalyzes dehydration reactions of the oxygen-containing fibers and facilitates char formation (Dombrowski 1996). When exposed to an open flame, the boric acid decomposes endothermically to release water and cool the flame. The glassy coating formed by the decomposition of boric acid suppresses the release of volatile species from the underlying fuel and acts as an oxygen barrier, thereby preventing further oxidation of volatiles. Because of the low intrinsic toxicity, boric acid and borates can be safely used in consumer products (Toxicological Risks of Selected Flame Retardant Chemicals et al. 2000).

A Review of Fire Blocking Technologies for Soft Furnishings However, boric acid treatments may have problems associated with durability to soaking, chalking, color change and undesirable texture. In soft furnishings products, nonwoven FR cotton batting is helpful in meeting various flammability requirements, including the cigarette ignition ASTM D5238-98 test (sandwich batt test), the open flame Cal TB 117 test (both vertical and horizontal burning) and the large-scale Cal TB 129 and 16 CFR 1633 tests (Wakelyn et al. 2003). Various methods to enhance both smoldering and flaming resistance of cotton battings have been explored. Barrier materials constructed of cotton blends with inherently flame retardant fibers (e.g., FR-modacrylic, FRpolyester, and FR-viscose) enable soft furnishings to comply with various cigarette resistance and open flame resistance regulations. The slow combustion of cotton battings in soft furnishings, especially mattresses, is the critical element that allows sufficient egress time for humans to react to the fire. The disadvantage, however, is that these barrier materials are very bulky and hence rarely used in upholstered furnishings. Polyester fiber Polyester fiber battings, commonly used in upholstered seats, provide a significant barrier effect when tested with smoldering cigarette ignition (Gandhi & Spivak 1994). However, it fails to protect the underlying cushioning material when an open flaming ignition source is used (Damant GH. et al. 1994). The polyester fiber melts away from the smoldering cigarette and extinguishes, whereas the polymer melt burns in the presence of flaming ignition. Once ignited, the molten polymer burns vigorously, resulting in substantial weight loss and increased temperature of the system. Thus, the polyester fiber batting acts as an additional fuel and the whole system fails.

Recent studies on the flammability of cushions with polyester fiber wraps (low loft batting) in our laboratories have shown that the presence of polyester wrap increases the PHRR when compared to analog systems without polyester fiber wrap (Davis et al. 2009). This study suggests that, regardless of the type of FR-PUF and/or cover fabric, polyester fiber promotes the composite system to burn vigorously. Organic and inorganic fiber blends Horrocks (Horrocks et al. 1993) developed a novel fire barrier fabrics comprised of a flexible nonwoven core containing both organic and inorganic fibrous components. The core is constructed such that it permits flexibility at both low and high temperatures. When exposed to temperatures below 500Â°C, the engineered fabric accommodates expansive forces generated by the developing intumescing char component by increasing in volume and thickness while still maintaining its structural integrity and flexibility. These composite structures have a unique flame and thermal protective behavior that enables the fabric to respond to an incident heat flux in a manner that initially enhances its protective property following intumescent char formation. At higher temperatures, this protective property is reduced but not destroyed, as it is in the case of high performance fabrics containing aromatic and carbonized fibers. These barrier materials, however, were not tested for open flame ignition performance. The latest development in nonwoven barrier fabrics is the siliconized thermally bonded highloft barrier material. The siliconized highloft is a blend of three different types of siliconized fibers (e.g., BasofilW, TencelW and ProtexW) held together with a low-melt polyester (Hendermann & Bridges 2006). Each component of the blend provides a specific and necessary functionality to the barrier material. The siliconized melamine NCM-JUNE 2017 51

fibers provide a non-shrinking form of carbon, whereas the regenerated cellulosic fiber improves the softness and water repellency of the blend. The regenerated cellulosic fiber is very cost effective and can be used to increase the bulk of the product. Siliconized modacrylic fiber, when used in an appropriate blend ratio, can reduce the local oxygen content within the barrier during a fire, thereby prolonging char oxidation. The low melt polyester provides resiliency to the barrier, and its strong thermoplastic character helps to maintain the structural integrity of the char formed. Polymeric foams Typically, soft furnishings contain standard PUF as the filling/cushioning component. The PUF is inherently flammable unless treated with an FR additives (e.g., halogen and halogenphosporous compound such as Tris(1Chloro-2-Propyl) Phosphate (TDCPP)) which are traditionally gasphase acting FRs (Kim et al. 2011). Over the past decade many FRs have been banned due to environmental, health, and safety (EHS) concerns, and many are under scrutiny (Environmental Protection Agency 2010; Kemmlein et al. 2009). An innovative and potentially green FR approach with potentially strong commercial viability is to create a fire blocking armor on the PUF or fabrics using a thin polymeric coating containing fire retardants (to be discussed in the Future Trends on Fire Blocking Technologies section). Other halogen-free FRs now in the research stage are PUF containing a combination of ammonium polyphosphate, pentaerythritol and melamine (an intumescent coating) and PUF impregnated with graphite (Singh & Jain 2009). Lower flammability polymer Another approach to reduce the flammability of foam is to use a foam based on a lower flammability polymer.

A Review of Fire Blocking Technologies for Soft Furnishings Intrinsically FR foams (e.g., polyimide foam) are more commonly used in higher risk environments (e.g., aircraft and spacecraft seats) where their higher cost is justified by the additional fire safety necessary to comply with strict flammability regulations. These foams may be harder to ignite, have lower HRR, have higher thermal stability, etc. For example, a polyester foam was evaluated by CPSC in the early 1990s as resistant to cigarette ignition. This foam exhibited superior resistance to smoldering ignition sources, but was more easily ignited by open flames (as compared to PUF) (Damant & Nurbakhsh 1992). Polyester foam is not commonly used in soft furnishings due to higher cost and durability issues (e.g., hydrolytic degradation). Encapsulation A cost-saving approach is to create a composite of a PUF core encapsulated by one of these intrinsically FR foams. For example, Hashish (Hashish et al. 2003) evaluated a polyimide foam as a fire barrier for spacecraft cushion material. When tested by cone calorimetry, the application of polyimide foam layers over standard PUF increased the minimum heat flux for ignition of flammable PUF from 27 kW/m2 to 48 kW/m2 . This ignition risk reduction was sufficient to enable the noncompliant PUF to pass the targeted regulations. Inclusion of polyimide foam layers also significantly reduced the PHRR, mass loss rate (MLR), and the generation of smoke and carbon monoxide. Carboxylated chloroprene foams are also commonly used to encapsulate the PUF core or as a fabric backing. Chloroprene foams are high density foams which are generally specified for public transport applications. They generally act as active fire barrier materials. Performance of fire barriers Successfully achieving the desired

Figure 1: Comparison of full-scale flammability test results for innerspring mattresses with different types of filling materials in the presence or absence of fire barrier materials (Nurbakhsh & Mc Cormack 1998). level of fire protection requires appropriate matching of barrier materials to the desired characteristics of the soft furnishing. This selection is generally a process of trial and error due to significant measurement science gaps. Below are a few examples demonstrating the complexity that makes a priori selection of fire barrier materials difficult. Impact of barrier materials on flammability of mattresses

Innerspring mattresses The impact of barrier materials on the flammability of innerspring mattresses with different filling materials is shown in Figure 1 (Nurbakhsh & Mc Cormack 1998). Regardless of the filling type, these innerspring mattresses were able to pass the open flame ignition test for mattresses (TB 129) designed for high occupancy dwellings, with a 100% success rate using a fire barrier (e.g., fiberglass fabric). The test criteria for passing TB 129 limits maximum heat NCM-JUNE 2017 52

release rate to 100 kW, total heat release in the first 10 min of the test to 25 MJ and weight loss to 1.36 kg (3 lb). This essentially requires complete protection of cushioning materials from heat and flame. Without the fire barrier, the same mattress construction had inconsistent TB 129 performance with the degree of failure depending on the type of filling material. For example, PUF innerspring mattresses had a success rate of 44%, signifying four passes out of 9 tests (Nurbakhsh & Mc Cormack 1998). The cotton batting/ PUF innerspring mattress and polyester fiber batting/cotton felt/PUF innerspring mattresses yielded a success rate two times greater at approximately 88%. Innerspring mattresses with a polyester fiber batting combined with an insulator pad and PUF or cotton batting had a 100% TB 129 success rate without the need for a fire barrier material.

Solid core mattresses In this same study, the researchers

A Review of Fire Blocking Technologies for Soft Furnishings determined that solid core mattresses passed TB 129 without using a fire barrier material (Nurbakhsh & Mc Cormack 1998). This is presumably a result of restricted airflow in a solid core mattress, which restricts the entrainment of oxygen needed to sustain pyrolysis. This suggests that under the right constructions and with the right combination of materials it may be possible to pass TB 129 without using a barrier material. However, this does not necessarily provide a product that is desirable by the manufacturer or consumer (e.g., it may not be comfor table, attractive, or costeffective).

Interaction with tickings Tickings perform differently in the presence or absence of fire barrier materials. A majority (~80%) of mattresses with a polyvinyl chloride (PVC) ticking pass the TB 129 without using a barrier fabric because PVC tickings are active fire barriers with self extinguishing behavior (Nurbakhsh & Mc Cormack 1998). Approximately 20% mattresses with PVC coated ticking fail due to antagonistic reactions of highly plasticized PVC coated fabrics with other components of upholstery. Mattresses with cotton/ fiberglass ticking do not require an additional fire barrier material to protect the underlying cushioning layer either. In this case, the cotton/fiberglass ticking acts as a passive fire barrier and physically prevents flame and heat transfer to the underlying cushioning layer. On the other hand, mattresses with cotton ticking certainly require a fire barrier in order to pass the open flame test. This is partly because cotton is extremely flammable and cotton tickings burn with a higher rate of flame spread, thereby exposing underlying cushioning layers to the open flames. Institutional vs. residential mattresses The materials and constructions discussed above for passing TB 129 are generally used for institutional mattresses. For institutional

Figure 2: Impact of fire barrier fabrics on performance of upholstered chair (with different cover fabrics) in full-scale flammability testing (Damant & Nurbakhsh 1994). mattresses, fire performance is more important than comfort and aesthetics. However, polyvinyl tickings, fire barriers with fiberglass substrates, and solid core mattresses with densified polyester batting are not preferred choices for residential mattresses due to cost, comfort and aesthetics. Unlike institutional mattresses, comfort and aesthetics are of primary importance in the case of residential mattresses; hence, fire performance must be achieved while still maintaining the comfort and aesthetics. For this reason, highloft barrier materials are more commonly used as fire barriers in residential mattresses. Ticking with polyester or polyester blends that are generally used in residential mattresses behave very differently in presence of fire barriers. The effects of melting and dripping can have a varied impact on the flammability of a mattress. Data for compliance to 16 CFR 1633 for residential mattresses with highloft or other newly engineered barrier materials are currently not available. NCM-JUNE 2017 53

Several polyester blend tickings are being currently investigated and their fire performance with and without fire barriers is being studied in our laboratories. Impact of barrier materials on flammability of upholstered furniture Cover fabric The impact of a fire barrier materials on the flammability of upholstered seating has been extensively investigated by Damant et al. (Damant 1996; Damant & Nurbakhsh 1994), who used the Cal TB 133 test for comparison. The test criteria for passing TB 133 limits maximum heat release rate to 80 kW, total heat release in the first 10 min of the test to 25 MJ and weight loss to 1.36 kg (3 lb). The test also has smoke and carbon monoxide limitations (Technical Bulletin 133 1991). With a fire barrier material, most cover fabrics will have a greater than 85% passing rate, which is 10% to 50% better than that achieved without using a barrier material. However, the level of confidence in

A Review of Fire Blocking Technologies for Soft Furnishings Table 2: Performance and properties of various cover fabrics in cigarette ignition and small open flame tests (Memorandum to D 2004)

passing the Cal TB 133 test depends on the type of cover fabric. In the case of poorly performing cover fabrics, the use of barrier material is essential to pass Cal TB 133 test (Figure 2). Using a nylon/polyester or polyolefin cover fabric with a fire barrier provides a chance of passing of 70% (3 out 10 replicates failed); whereas chairs with polyester or wool/nylon cover fabrics had a higher chance of passing (90%). In a separate study (Memorandum to D 2004), a range of barrier materials and cover fabrics used in upholstered furniture were tested in a mockup seating arrangement, and their individual as well as combined responses to cigarette ignition, small open flame, and wooden crib tests were reported. A description of the cover fabrics is provided in Table 2, with flammability results separated by ignition source and barrier fabric type summarized later. In the absence of a fire barrier fabric, all the cover fabrics passed the smoldering ignition test (cigarette ignition source) but failed the small open flame (butane gas flame ignition source) and crib ignition tests. The exceptions to these results were FR polyester and silk cover fabrics, which self extinguished once the butane flame and burning crib were removed. In the absence of a cover fabric, all the barrier fabrics passed the smoldering test, butane flame and crib

ignition tests, except for the 100% cotton, which only passed the cigarette and small open flame ignition tests. This data suggests that the type of barrier material appears to impact the ability of the cover fabric to pass both the smoldering and open flame ignition tests. For example, the 100% cotton (cover fabric II) failed the butane flame ignition tests when combined with all barrier materials except the 100% cotton. The same cover fabric (100% cotton) failed the smoldering ignition tests for the 100% cotton (220 g/m2), the novoloid, and the melamine based barrier fabrics. Another example is the barrier fabric that contain inherently flame retardant fibers (e.g., polyaramids, phenol-aldehyde, melamine and modacrylic), which were resistant to all three ignition sources, although their fire performance was altered by the type of cover fabric. Most barrier fabrics tested failed the cigarette ignition test in the presence of 100% cotton cover fabrics (the cotton twill and cotton corduroy). This study concluded that some cover/ barrier fabric combinations appear to be effective in protecting the PUF from a flaming ignition source but do not always provide the same protection from a smoldering ignition source. This is derived from the fact that none of the cover fabrics ignited from a smoldering cigarette when tested by themselves, yet ignition occurred when the barriers were combined with certain NCM-JUNE 2017 54

cover fabrics. Trapping of heat below the barrier fabric may cause exothermic reaction in the PUF leading to ignition. Barrier effect mechanisms

PART II CONTD. IN THE NEXT ISSUE.......

In a separate study, Ohlemiller (Ohlemiller & Shields 1995) concluded that the barrier effect is more physical than chemical. In this study, the researchers measured the impact of HRR by changing the barrier material and covering fabrics over a Cal TB 117 complaint PUF (Glossary of flexible Polyurethane foam technology & Joint Industry Foam Standards and Guidelines SECTION 15.0 Published: July 1994). The PUF/barrier material/cover fabric specimens were tested in the cone calorimeter at 35 kW/m2 heat flux. The cone data indicates that woven glass fabric yields a lower averaged HRR regardless of the cover fabric type than do aramid fiber fabric or knitted fabric with a glass and charring fiber blend.

INTERNATIONAL BUSINESS PAGES European Commission Working Document On

Sustainable Garment Value Chains Through EU Development Action Worldwide, millions of workers, communities, and businesses are involved directly and indirectly in the garment value chain. A garment product typically passes through the hands of dozens of stakeholders across different continents before reaching the final consumer. Ensuring that economic growth and development go hand in hand with social justice, decent work and environmental protection in the complex and fragmented production networks of the garment value chain is a desired outcome. It is in line with key objectives of the UN 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). European Commission services are actively engaged in coordination and cooperation activities with EU Member States, the European Parliament as well as civil society actors, the private sector and international organisations to achieve more sustainable garment value chains. In international cooperation, the commitment of the Commission to promote sustainable textiles and garment value chains is evidenced by ongoing development cooperation activities and tools. Despite these efforts, economic, social and environmental challenges remain and need to be tackled. EU Council conclusions on The EU and Responsible Global Value Chains, 8833/16, 12 May 2016 supported "efforts undertaken in promoting responsible supply chains through initiatives such as an EU Garment Initiative". The Council further "strongly [encouraged] the Commission and Member States to share best practices, including the promotion of new and innovative approaches, and to scale up such initiatives and expedite their delivery." This Staff Working Document (SWD) relates to existing engagement and aims to outline the EU response towards more sustainable garment value chains in the field of the Union's development policy. Focusing on identified thematic priorities and intervention areas helps to maximise the benefits of EU garments-related development cooperation activities. This SWD lays out elements for an effective response to capacity-building, awareness-raising and technical assistance needs with a view to capitalising on the opportunities and addressing the key challenges in the sector. Introduction Global value chains, where different production stages are carried out in different countries, have become a dominant feature of global trade. More than 70% of world trade consists of intermediate goods, services and capital moving across countries. The significance of global value chains raises the question of how to ensure their sustainable management. Achieving sustainable production and consumption and decent work are among key objectives under the Sustainable Development Goals (SDGs) in the context of the 2030 Agenda for Sustainable Development. The aim is to ensure that economic growth and development are accompanied by social justice, decent work and environmental protection, including for those sectors characterised by

particularly complex and fragmented production networks. A case in point is the garment value chain, considered to be one of the most complex production models globally with significant downstream, upstream and related activities involving different industries such as cotton, textile, or footwear. It is an important value chain in economic terms, both within the EU and in partner countries, providing employment opportunities to millions of workers, especially young women. However, particularly in lowincome production countries, the industry is often characterised by persistent structural problems linked to the fragmentation of labour-intensive, low-skill production across many factories and international locations. Due to the scale and the profile of workers, the sector has great potential to significantly contribute to economic and NCM-JUNE 2017 55

social development. Acting upon the sector's vast sustainability challenges and risks like child labour, unhealthy and unsafe working environments, poor working conditions and wages and water pollution in a concerted manner contributes to several other SDGs, such as ending poverty, empowering women, inclusive growth, and global partnerships. The Commission's ongoing work on sustainable garment value chains is therefore a sector-specific example of implementing core visions of the 2030 Agenda. It seeks to ensure improvements in terms of labour conditions and human rights, including a strong gender equality focus (75% of all garment workers are women), and environmental impact, such as an efficient use of resources and sustainable production and consumption patterns, contributing to a circular economy.

INTERNATIONAL BUSINESS PAGES Value chains cover "the full range of activities that firms and workers do to bring a product/good or service from its conception to its end use and beyond. This includes activities such as design, production, marketing, distribution and support to the final consumer." In global value chains intermediate goods and services are traded in fragmented and internationally dispersed production processes. The ILO, G20 and G7 opted to use the notion of global supply chains. In this document the notions value chain and supply chain can be used interchangeably as in the EU Council conclusions of 12 May 2016. The Union's development policy can be a tool for comprehensive engagement with governments in production countries, the private sector along the value chain, and contribute to wider EU efforts on capacity building, promoting responsible business conduct, investment, and decent work. It may stimulate discussions on development approaches towards competitiveness and Aid for Trade strategies in support of global value chains, and sustainable industrialisation processes. Increasing the transparency in the value chain – disclosing information to the public in a comprehensible, accessible, and timely manner and operating openly and transparently – is considered an important stepping stone to improve sustainable business practices and working conditions in producing countries. There is already significant engagement on achieving sustainability in the garment sector and related supply chains across different partner countries and through different policy channels. Within the EU, an active discussion is also taking place on how to encourage better coordination and dialogue between all stakeholders working towards more sustainable garment value chains, improve communication on successful initiatives and relevant EU actions, and raise awareness among European consumers.

This document aims to raise awareness on the benefits of action towards responsible business conduct, decent work, and more sustainable value chains, focusing on development cooperation efforts in the garment sector, but it is not intended to provide a comprehensive picture of all ongoing activities or related initiatives in other policy areas or for other sectors at EU level or in partner countries. THE GARMENT VALUE CHAIN Characteristics The garment value chain covers some of the most globalised industries with strong upstream and downstream linkages. The complex sourcing model spans from fibres (raw materials), yarns (spinning), fabrics (weaving and knitting, etc.) and finished fabrics (dying and printing, etc.), garments/clothing (cutting, sewing, trimming, ironing, etc.), to final consumer (retailing and branding), and supporting activities such as insurance, logistics, packaging, labelling, marketing, etc. On the one hand, the textile industry involves research, design, development, manufacturing and distribution of yarn, textiles, and fabrics. All have a significant impact on the environment and the use of resources, which is reflected both in the production, consumption and end-oflife phase. It comprises different products based on natural or synthetic fibres. On the other hand, the more downstream labour intensive garment industry, also referred to as apparel or fashion/clothing industry, more narrowly concerns the production and life cycle of garments. The EU market of the garment sector is mainly driven by small and medium enterprises via multiple of diverse distribution channels (even though most famous retailers and brands are often large companies, whereas the global market of the garment sector is driven by large buyers, such as manufacturers, retailers and brands, setting up multi-layered, decentralised sourcing and production networks across a vaNCM-JUNE 2017 56

riety of countries, often located in the developing world. The EU is the major import destination due to the size of the market combined with high per capita consumption rates. The main clothing exporters to the EU in 2015 were – in descending order – China, Bangladesh, Turkey, India, Cambodia and Vietnam. The bulk of production is in Asia, and includes other major garment manufacturing countries like Indonesia, Pakistan, and Sri Lanka. Tunisia and Morocco are also among the top 10 exporters to the EU in 2015. Emerging suppliers with high growth rates are Myanmar and also Ethiopia, albeit still less important in global terms. This also holds for a multitude of countries in Africa and the Americas that exhibit sizeable garment and textile industries as a share of their total manufacturing, such as Haiti and Madagascar, and that could be of increasing interest to global buyers, such as Kenya, Mauritius, and Lesotho. Sector vulnerabilities and potential The garment sector is an important economic and employment driving force in many lowincome countries given that it is one of the first stage manufacturing sectors. It employs millions of people and strongly contributes to export revenues, supporting exportled industrialisation. The garment sector in Bangladesh makes up 80% of overall exports, of which approximately 60% are imported into the EU, and it employs roughly 4 million people directly, with a large number of jobs indirectly associated with the industry. An estimated 75% of all garment workers globally are women; for partner countries, the gender employment and wage dividend out of the garment sector can be significant to enhance women's economic empowerment and addressing gender inequality. If the right framework conditions and a supportive policy environment are in place, the industry holds great potential for growth, industrial organisation, development and job creation, as well as sustaining livelihoods of the youth.

INTERNATIONAL BUSINESS PAGES While there appears to be some diversity among garment exporters globally, a number of common challenges remain, linked to the complexity of the sourcing model and the labourintensive, low-skill and fragmented production in the sector. Practices such as multiple subcontracting are widespread and often make efforts to control the production and working conditions more complex, as these smaller subcontractors may be informal and not registered. For instance, a survey conducted in Bangladesh finds that 32% of the 479 garment factories surveyed were informal subcontractors, and 91% of informal factories produced at least partly for export. As a consequence, work is characterised by insufficient or absent protection under the legal and regulatory frameworks. The current production system makes it difficult to establish how and where garments are produced, i.e. tracing the origin of a garment back to its source, and to properly assess whether they were produced in a sustainable manner. Major common social and environmental challenges across many factories and international locations should be addressed. Issues include low wages below 'living wages', lack of regular contracts, long working hours, trafficking in human beings, forced labour, child labour, lack of enforcement of collective bargaining and freedom of association rights, poor building safety, harmful impact of hazardous chemicals used in garment production and in general poor occupational safety and health protection, the precarious position of many women employed in the industry, or unsustainable use of resources and poor water, energy and waste management. EU POLICIES AND THE GLOBAL FRAMEWORK All external action by the EU is guided by the respect for human rights and sustainable development principles as defined by Article 21(1) and (2) of the

Treaty on European Union11 ; the Charter of Fundamental Rights of the EU12 ; and the EU Strategic Framework on Human Rights and Democracy. Development action on sustainable garment value chains can be a tool to promote higher social and environmental standards in line with the existing policy framework such as the Communication on a Stronger Role of the Private Sector (2014); the Trade for All Strategy (2015); the Communication on Closing the loop â&#x20AC;&#x201C; An EU action plan for the Circular Economy (2015); the Communication on Promoting decent work for all (2006); and actions on Corporate Social Responsibility (CSR) based on the EU strategy for Corporate Social Responsibility (2011).

For instance, in 2015, Sri Lanka, Bangladesh, Cambodia, Vietnam and Pakistan are ranking among those countries with the lowest minimum wages in the global garment industry. The Commission's engagement to promote responsible global value chains takes place through different external and internal policies. Mutual enhancement between these policies is suppor ted, for instance, in the Commission's Communication on Next steps for a sustainable European future â&#x20AC;&#x201C; European action for sustainability19 and the Commission's Proposal for a new European Consensus on Development of November 2016 which calls for better integrating economic, social and environmental dimensions. There is relevant EU legislation in place applicable to the garment sector within the EU, which contributes to responsible management of garment value chains, including in developing countries. This includes the non-financial reporting directive which obliges Member States to impose to large undertakings requirements on disclosure of information on social and employeerelated aspects and respect for human rights, amongst others. This increased transparency benefits companies, inNCM-JUNE 2017 57

vestors and society at large, and will improve information available to consumers. The first reports will be available in 2018. Further, the EU Occupational Safety and Health (OSH) legislation concerns the introduction of measures to encourage improvements in the safety and health of workers at work. The REACH regulation (Registration, Evaluation and Authorisation and Restriction of Chemicals) provides that it is for manufacturers, importers and downstream users to ensure that they manufacture, place on the market or use such substances that do not adversely affect human health or the environment, and provides for information and cooperation between client and contractor on OSH and the safe use of chemicals. The Commission also further implements the voluntary EU Ecolabel, applicable to products on the EU market, which includes certification of respect for core labour standards and OSH principles for certain products, including criteria for textiles and footwear. The Product Environmental Footprint (PEF) pilot, specifically addressing leather, footwear and t-shirts among other product categories, and the Organisation Environmental Footprint (OEF) pilot, addressing the retail sector, are also being implemented. The EU also works to close the loop by increasing the recycling of textile waste: with the waste legislative proposals28 adopted in December 2015 as part of the Circular Economy package, the Commission proposed ambitious targets to increase recycling and preparing for re-use of municipal waste to 65%, while limiting its landfilling below 10%. Achieving such levels entails taking action on as many fractions contained in municipal waste as possible, including on textile waste. The proposal also envisages that Member States step up actions to prevent waste, and explicitly refers to systems that promote reuse of textiles. Such systems are important in order to ensure that textile items are properly collected and handled so that their value

INTERNATIONAL BUSINESS PAGES is preserved and they continue to serve their useful purpose in the EU or in third countries. It also aims at improving the functioning of Expended Producer Responsibility schemes, which are important for textiles as well, in particular by introducing a requirement that the contributions paid by the producers should be modulated by taking into account the reusability and recyclability of products. The EU promotes implementation of internationally recognised guidelines and principles on Corporate Social Responsibility (CSR)/Responsible Business Conduct (RBC), which include the Organisation of Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises30 as well as the sector-specific OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector, the United Nations (UN) Guiding Principles on Business and Human Rights and the UN Global Compact's principles, the voluntary International Standard on Guidance on social responsibility ISO 26000, and the ILO Tripartite declaration of principles concerning multinational enterprises and social policy. The Commission also encourages the ratification and effective implementation of international labour conventions, in particular the International Labour Organisation (ILO) Conventions to improve labour standards including its eight fundamental Conventions, and of relevant multilateral environmental agreements. This takes place in the EU's political dialogue with partner countries, through development cooperation projects, and through EU trade policy instruments such as the EU's Generalised Scheme of Preferences Plus (GSP+). The EU is also actively involved in international normative and political frameworks such as the G7 Leaders' Declaration of June 2015 on responsible supply chains36 , the G20 priority (2017) to promote decent work in global supply chains, the action plan

on decent work in global supply chains adopted at the 105th International Labour Conference in June 2016 and the debate at the ILO Governing Body on its implementation.

The high attention to sustainability in global value chains including the garment sector is also reflected in the Council conclusions on Responsible Global Value Chains, Child Labour, and Business and Human Rights. This high political interest is also reflected through discussions in the European Parliament, including the European Parliament resolution on the second anniversary of the Rana Plaza building collapse and progress of the Bangladesh Sustainability Compact39 , and the ongoing preparations of a report on EU engagement in the garment sector. EU ACHIEVEMENTS AND LESSONS LEARNED

stakeholder initiatives such as the Bangladesh Sustainability Compact and the Labour Rights Initiative in Myanmar. Financial support is a major pillar of the EU's existing commitment. Different forms of support have an impact on the sector and its performance. For instance, support for banking and financial services and trade facilitation measures play an important role as they contribute to reducing trade costs at-and-behind-the-border and may benefit developing country producers and exporters of garments and textiles, particularly when these products play a large role in a country's economy and export basket. Non sector-specific support is also provided in areas such as skills development, livelihoods, human rights and good governance, gender equality, and access to finance. Bilateral programmes and projects

The EU has been active in the promotion of sustainable garment value chains at bilateral, regional, and global levels. Commission services are cooperating with Member States, civil society organisations, governments, and other organisations (ILO, OECD) on a broad range of topics and projects related to sustainable value chains. This includes activities to improve living wages, human and labour rights for workers, and to strengthen labour and environmental policies and regulations and the enforceability of relevant laws as well as CSR/RBC. For instance, the Commission services have been actively engaged in the multi-stakeholder process developing the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector, along with several EU Member States. Commission services and EU Delegations are also involved in the development of an enabling business and investment environment for both local and international business through domestic reforms and good governance in partner countries. The Commission is also engaged in multiNCM-JUNE 2017 58

There is a large number of EU financed projects and programmes in direct support of more sustainable garment, textiles, and related supply chains across partner countries such as Bangladesh, Cambodia, India, Lesotho, Madagascar, Myanmar, Pakistan and Vietnam. A case in point is the Myanmar Trade Development Programme, financed under the Development Cooperation Instrument (DCI), which runs from 2015 to 2017 and supports the government in promoting trade. Currently garments constitute almost 70% of EU imports from Myanmar. A better trade infrastructure and measures facilitating export procedures will also help the growing garment export sector in Myanmar. In Bangladesh, the "Better Work and Standards Programme (BEST)" (20102015, EUR 16.9 million) financed under the previous Development Cooperation Instrument helped Bangladesh to take advantage of global market

INTERNATIONAL BUSINESS PAGES opportunities by improving competitiveness and facilitating export growth and diversification through increased productivity and compliance with international norms and practices. Achievements include notably strengthening of the monitoring functions of the government, with a total of 42 monitors trained on social compliance and 3,486 factory visits or audits executed, 663 factories have improved significantly their compliance with global social audit and certification schemes such as Worldwide Responsible Accredited Production (WRAP) and/or Business Social Compliance Initiative (BSCI), strengthening the capacity of the Factory Inspectorate, with 40 new labour inspectors trained in cooperation with ILO, and an immediate response, which included both medical (e.g. medicine) and non-medical (e.g. food) assistance, following the fire at Tazreen Fashions Ltd. in 2012 and the Rana Plaza building collapse in 2013. The project provides valuable lessons learned which have been shared with and used in other countries, e.g. China and Ethiopia. Regional/global programmes and projects In addition to country-based support, there is a spectrum of programmes and projects at a regional and global level. They include: EU regional programme SWITCH-Asia SWITCH-Asia, funded since 2007 under the Development Cooperation Instrument, works directly with the governments in diverse Asian countries and engages small and mediumsized enterprises (SMEs) to take up various models of sustainable consumption and production. Several projects have addressed Corporate Social Responsibility (CSR) in specific value chains, such as projects like SMART Myanmar, CSR Vietnam, Sustainable textiles made in Jaipur, or Sustainable Carpet and Pashmina in Nepal. Further SWITCH programmes are SWITCHMed and SWITCH-Africa. As an example, in Myanmar the

SWITCH-Asia "SMART Myanmar I and II" projects promote and support the sustainable production of garments "Made in Myanmar", striving to increase the international competitiveness of SMEs in this sector while reducing the environmental impact of their production processes. The project's first phase (2013-2015, EU contribution EUR 1.8 million) established a factory improvement programme and also provided for successful in-factory consultancy on productivity, resource efficiency and social standards. The current second phase (2016-2019, EU contribution EUR 2.5 million) aims at scaling-up and institutionalising successful practices from SMART's first phase. In India, the SWITCH-Asia project "Sustainable Textiles for Sustainable Development" (2009-2014, EUR 1.9 million) promoted environmentally friendly production and consumption of textiles in Rajasthan, involving 550 SMEs. 1000 block printers were trained and employed by the "model ecofriendly textile park", set up with infrastructure for the sustainable production of textiles, with a positive impact on poor workers and their communities. Improvements initiated in the framework of the project include the adoption of water efficiency techniques, a water management and treatment system, and the promotion of natural fibres and dyes. In India as well, the SWITCH-Asia project "Going Green" targets the textiles, leather and substitutes sectors to build sustainable businesses for textile artisans and improve their working conditions through efficient eco-friendly processes, access to resources and increasing the demand for 'green' products. The EU is contributing EUR 958 000 over the period 2014-2017. EU-Africa Partnership on cotton The EU-Africa partnership cotton development programme50 (2012-2017, EUR 11 million) financed under the 10th European Development Fund, supports NCM-JUNE 2017 59

value chain actors in implementing the cotton strategies for a sustainable development of this commodity sector. Overall, a number of milestones were achieved, while challenges remain. Regarding the internal competitiveness and sustainability of the African cotton sector, the project enabled SMEs in the sector to pilot the production of semi-artisanal textile as a niche market for African demand and the highend market in Europe. New practices on cotton decontamination are effective and integrated by about half million farmers in Western Africa. SMEs in the textile industry were also supported under the projects "Diversify the market by introducing a line of 100% naturally-dyed cotton products" in Burkina Faso (2014-2016, EUR 140 000) which provided a training of trainers to about 800 women trainers having a potential impact to reach the 50 000 weavers and the 2 700 dyers; and "Support to the capacity building of actors and setting up a joint trading association for cotton-textile-clothing sectors in Cameroon, Chad and Burundi" (2014-2016, EUR 300 000) which reinforced the capacity of private sector actors and cotton farmers' associations to address competitive gaps at all levels. European Instrument for Democracy and Human Rights (EIDHR) Social partners and civil society organisations worldwide are supported to become an effective force for political reform and to defend human rights in the work place. For example, the EIDHR has put in place an initiative (EUR 5.5 million) providing support to selected key government's actors to improve compliance with the eight fundamental ILO Conventions, and to civil society organisations and social partners to identifying, analysing and monitoring domestic policies pertaining to the implementation of the UN and ILO conventions relevant to the EU's Generalised Scheme of Preferences Plus (GSP+).

INTERNATIONAL BUSINESS PAGES Following the launch of the 2015 EIDHR global call for proposals, three projects have been selected, working simultaneously and jointly in Armenia, Bolivia, Georgia, Cape Verde, Mongolia, Pakistan, Paraguay, Philippines and Kyrgyzstan. The projects started in 2017 and will dedicate part of their budget to increase the capacity of local civil society organisations. As garment and textile manufacturing plays a role in many of the targeted countries, the project will also benefit these sectors. Development Education and Awareness Raising (DEAR) programme Within the DEAR programme financed under the Development Cooperation Instrument, the project "Mobilising Europe for a Living Wage for Garment Workers" (2013-2015, EUR 1.3 million) aimed at contributing towards attaining decent wages and acceptable working conditions in the global garment industry. Awareness raising actions in 17 European Member States and acceding countries were carried out where more than 30 million citizens have become aware of the wage challenges and working conditions in the garment industry. 149251 citizens signed the online living wage petition. The positive results were followed up by further activities which resulted in 10 garment brands and retail companies with a significant European market share adopting living wage policies and practices. Partnership Instrument Under the Partnership Instrument (Annual Action Plan 2016) and in line with Trade for All Strategy, a EUR 9 million action on Responsible supply chains in Asia54 will be implemented in six EU key trade partners (2017-2019) â&#x20AC;&#x201C; China, Japan, Myanmar, Philippines, Thailand and Viet Nam, to promote smart, sustainable and inclusive growth by supporting corporate social responsibility/responsible business conduct (CSR/RBC) practices and approaches in supply chains in Asia in line with international instruments, ad-

dressing notably environmental protection, decent working conditions and the respect of human rights. Activities are tailored to address sectors with high human rights, decent work, and environmental risks, with interlinked supply chains, and highgrowth sectors. This will include the garment and textile sectors in specific target countries. Global Public Goods and Challenges Programme (GPGC) Several projects are funded such as the EU Expert Facility on Employment, Labour and Social Protection (SOCIEUX+) (2016-2020, EUR 9 million). SOCIEUX + is the extension (2017-2020) of the SOCIEUX social protection program, which began its activities in January 2014 and is now recognized as an efficient and flexible instrument of technical assistance to support the efforts of partner countries to better design and manage their social protection and employment systems. It is a demand-driven project that mainly deploys experts and practitioners from EU Member States. The project "International market information tools as a global public good" began implementation in 2016 (EUR 11.4 million, EU contribution EUR 5 million). It supports the International Trade Centre's (ITC) work on a set of market analysis tools. The EU had supported such ITC market transparency tools to inform businesses and consumers about trade opportunities and market requirements from the outset. This also includes the ITC's Standards Map project which provides information on over 210 standards, codes of conduct, and audit protocols addressing sustainability hotspots in global supply chains. 58 different standards are listed for textiles alone. The information is freely accessible through a webbased portal. The EU funded project includes user training and capacity building in developing countries. NCM-JUNE 2017 60

EU Research and Innovation programme Horizon 2020 The "Sustainable Market Actors for Responsible Trade (SMART)" project (2016-2020), EU contribution EUR 2.49 million) centres on products originating wholly or in part in developing countries and sold by businesses to consumers and procurers in the EU, thus integrating the economies of developing countries to the European economy. One of four research work packages under SMART covers the lifecycle of ready-made garments. SMART involves 25 research institutions globally, including the Bangladesh Garment Manufacturing Exporters Association's Institute of Fashion and Technology. EU LIFE Programme The "LIFE ECAP - European Sustainable Clothing Action Plan" project (2015-2019, EU contribution EUR 2.12 million) has a circular approach with view to divert over 90 000 tonnes/year of clothing waste from landfill and incineration across Europe by March 2018, and to deliver a more resource efficient clothing sector. ECAP will set targets aiming to scale up these savings by 2020 to over 540 000 tonnes/ year (EUR 111 million), and by 2030 to over 700 000 tonnes/year (EUR 144 million). Furthermore, it aims at reaching more than 1.6 million tonnes CO2 eq., savings, as well as water savings of 588 million m3 . ECAP actions will demonstrate the business case for reducing clothing waste by systematically addressing the key challenges in production, consumption and disposal, which will reduce the environmental impacts of clothing production and consumption. The ECAP framework will measurably: reduce the waste, water and carbon footprints of EU clothing; prevent waste in the clothing supply chain, and the use of domestic and work clothing by business, consumers and governments; ensure that less low-grade clothing and textiles goes to incineration and landfill; and encourage innovation

INTERNATIONAL BUSINESS PAGES in resource-efficient design and service models to stimulate business growth in the clothing sector and its supply chain. EU Programme for Employment and Social Innovation A project (2016-2017, EUR 600 000) on research and development of good practices on occupational health and safety (OSH) in global supply chains aims at enhancing data collection and analysis and propose recommendations to improve working conditions in the selected supply chains (agriculture and food). Pilot countries are Colombia, Indonesia, and Madagascar, where the outcome will also be of use in other sectors such as garments and at country level. Another project under this financing instrument co-funds research and training material on strengthening the effectiveness of labour provisions in trade agreements, such as the publication of a handbook on the assessment of labour provisions in trade and investment agreements in December 2016.61 The EU co-funded project has resulted in a better understanding of the challenges and potential for improving decent work in supply chains such as garments. Ensuring complementarity of actions There are a number of EU programmes and initiatives addressing labour rights and the decent work agenda in partner countries. Important distinctions can be made concerning: i) the respective beneficiary countries (e.g. the Partnership Instrument project referred above addresses EU trading partners including Japan and China to advance the EU's strategic interests and promote its core values regarding responsible business conduct); ii) the implementing partner (e.g. the EIDHR call for proposals is directed at social partners and civil society organisations, thus helping to

strengthen civil society to defend reforms and their rights and to address discrimination); iii) the type of activity funded (e.g. research under Horizon 2020 and EaSI); and iv) the specific rights addressed, including wages, unionisation, workers' control and management (e.g. under EIDHR), safe working conditions, or child labour and forced labour (e.g. under the new garment-specific action, see Matrix of Action fur ther below). Such programmes and projects can both be distinct and highly complementary at the same time. In summary, the variety and comprehensiveness of ongoing development cooperation programmes and projects, activities and tools which address sustainable development in garment value chains illustrate the significant EU engagement in several countries and regions. AN EU RESPONSE Building on the EU's ongoing activities and the findings from the exploratory phase outlined above, the Commission has identified three thematic priorities and three intervention areas as elements for the EU development cooperation response to more sustainable garment value chains. A Matrix of Action65 (Annex 1) serves as structural framework. It illustrates how EU development cooperation can foster change, and it links the three thematic priorities with the three intervention areas. This will help to guide relevant stakeholders' contributions at EU level, complementing engagement at EU Member State level66 , and will help steering the ongoing engagement, e.g. by expanding towards untapped opportunities for EU development action. The aim is also to strengthen cooperation with partners including international organisations and civil society organisations to contribute to more sustainable garment value chains. Several recently approved development projects respond to this "3x3" vision, amounting to a grant funding of around EUR 45 million. During the inNCM-JUNE 2017 61

formal stakeholder consultations in 2015 (see previous section), providing funding and capacity building were named most often as expected concrete actions. In garment-specific development cooperation actions, the Commission gives particular attention to: -

capacities to implement social and environmental standards, and those interventions that are globally effective, such as the new garment project described further below which includes action on child labour and forced labour;

evidence-based interventions in specific contexts and countries following a value chain approach, such as the new EU-ITC partnership to strengthen fashion value chains and boost job creation in Burkina Faso and Mali, and the new EC-ILO project in Pakistan supporting SMEs in the textile and leather sectors in complying with international labour and environmental standards; and - strengthening private sector participation and use innovative financing instruments, such as the blended finance operations.

Thematic priority 1: Women's economic empowerment A priority in EU development policy is gender equality and women's economic empowerment and implementing the EU Gender Action Plan 2016-2020. As an estimated 75% of global garment workers are female, any engagement on sustainability in the garment sector will over-proportionally benefit women. Further, reducing gender inequality can raise the productive potential of millions of people and is widely recognised as essential for human and economic progress. A 2016 Commission-funded study on responsible management of the supply chain in the garment sector68 shows that all 12 garment producing countries covered in the study perform poorly on gender equality and eco-

INTERNATIONAL BUSINESS PAGES nomic empowerment of women. Little attention is given to improving the quality of employment for women in the sector. As an example, only a very small proportion of women develop professionally to reach supervisory or management roles. Some directed efforts through development funded programmes have actively facilitated training of women workers up to the next levels in garment factories. However, these are still fragmented initiatives with little strategic focus on long term capacity building or ownership at the national level. Therefore, a long term priority must be given to the transformative potential of garment work and female entrepreneurship, which will be at the core in implementing the EU Gender Action Plan in all existing and new garment-related projects. In the short-term, it is important to prioritise ameliorating working conditions and OSH standards to address barriers and challenges faced by women in the garment chain. The project "Reduce workplace violence and economic discrimination against women in the export-oriented garment industry in South India" (20142017, EU contribution EUR 170 000) aims at demonstrating that women can serve effectively as line supervisors in garment factories, thereby helping to change a widespread culture of discrimination. The project involves ten factories, targeting 120 women to be trained as line supervisors and also aims at providing male and female line supervisors with the human resources skills and knowledge of Indian law needed to reduce harassment in garment factories. The project is implemented by the Fair Wear Foundation. Thematic priority 2: Decent work and living wages Promoting decent work remains a high priority on the EU's agenda. Despite the fact that there has been ongoing engagement on labour rights and decent work for decades and that these challenges are continuously addressed

In development cooperation, the thematic GPGC programme refers specifically to the Decent Work Agenda and rights-based approach to employment and labour, including through approaches that take global supply chains into account. The objective is to address issues of living wage, rights at work including freedom of association and rights to organise, health and safety at work and the right to social and legal protection, especially for the most disadvantaged workers. by many organisations and initiatives, more can be done to foster ratification and effective implementation of ILO conventions in garmentproducing countries. Fostering improvements in this area can have major repercussions evident at factory level. Local social partners often have limited capacities and can sometimes be either not sufficiently involved or side-lined. In order to make effective progress in this area, a wide range of actors need to be involved (public authorities, trade unions, business at the local level as well as from the international communities). Efforts in development cooperation complement other policy tools such as foreign policy or trade ones. For example, projects under the EIDHR support civil society and social partner's actions contributions to the monitoring of the EU's Special Incentive Arrangement for Sustainable Development and Good Governance, GSP+, which is part of the Generalised Scheme of Preferences (GSP). The GSP+ scheme is designed to help developing countries assume the special burdens and responsibilities resulting from the ratification of 27 core international conventions on human and labour rights, environmental protection and good governance as well as from the effective implementation thereof. For instance, projects under the EIDHR support civil society and social partners' actions in monitoring GSP+ compliance. EU supports multilateral programmes, such as the G7 Vision Zero Fund, a multi-donor trust fund managed by the ILO with an initial priority focus on the textile and garment sector in line with EU work on responsible value chains. The overall objective of the Fund is to NCM-JUNE 2017 62

reduce the number of work-related fatalities and accidents and occupational diseases in selected developing countries, and to improve government capacities and private sector initiatives that promote decent work with a specific focus on occupational health and safety. Thematic priority 3: Transparency and traceability in the value chain A third thematic priority, transparency and traceability in the value chain, is particularly pertinent for the garment sector due to its fragmented production and the prevalent practice of illegitimate subcontracting. Undeclared informal work rarely complies with decent work standards. Informality is an additional challenge that concerns decent work deficits and lack of transparency. Better transparency and traceability in the value chain are likely to improve the efficient and sustainable use of resources, contribute to sustainable production and consumption and thus to a circular economy. Increasing transparency and traceability in the garment supply chain concerns many actors and solution providers. Development cooperation can contribute to reducing risks for the entire industry, to foster companies' accountability, and responding more quickly in case of human rights violations, environmental or product safety concerns leveraging its impact through upstream and downstream effects. Diagnostic work on transparency and traceability in the garment value chain is currently carried out by external consultants. This study covers a mapping of existing traceability approaches, and fundamental elements that operational traceability systems should have. It will

INTERNATIONAL BUSINESS PAGES aim at explaining how better tracing and tracking products throughout the whole supply chain can help increase transparency, and generate new opportunities of developing a reliable garment industry in which social and environmental standards are respected. Traceability is considered one essential step for companies in performing due diligence throughout their global supply chains. The Commission is fully involved in the OECD work on responsible business conduct, notably regarding the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector72 that was released on 8 February 2017. The Guidance suggests how companies active in the sector could better identify, prevent and mitigate any potential harmful impacts when it comes to respect of human and labour rights, and protection of the environment. For instance, the EU and the OECD hosted an event in Phnom Penh, Cambodia, in December 2016 on how to step up the industry's current sustainability efforts by putting into practice the new guidance.

Transparency refers to disclosing information to the public in a comprehensible, accessible, and timely manner. Traceability is the process by which enterprises track materials and products and the conditions under which they were produced through the supply chain. Intervention area 1: Providing financial support Financial support is traditionally a major component of international cooperation to improve sustainable business practices and working conditions in producing countries. One of the new garment-specific flagship actions is "Promoting responsible value chains in the garment sector" adopted in December 2016 under the Global Public Goods and Challenges thematic programme of the Development Cooperation Instrument. The total budget is EUR 19.1 million with a EU contribution of EUR 16.5 million. The aim of the project is to improve working con-

ditions in global garment value chains with a focus on Decent Work and Transparency and Traceability. It includes three modules, from which the first two focus on decent work and compliance with labour standards, implemented with the ILO: an action on child labour and forced labour in the cotton supply chain production for an EU contribution of EUR 7.5 million and an EUR 3 million contribution to the G7 Vision Zero Fund (referred to above), supporting occupational health and safety in the garment sector. The third module, of an EU contribution of EUR 5.5 million, focuses on transparency and traceability efforts and includes action on enhancing the knowledge, awareness, and global advocacy on social and environmental conditions in the garment value chains. This will promote responsible consumption in the EU and responsible production along the value chain, as it will contribute to enhancing businesses' due diligence efforts and better ensuring sustainability in the garment sector in terms of human rights, labour, and the environment. The project will create synergies between development work and private sector operations in the fashion system.

Other new projects include: The "European Commission-International Trade Centre (ITC) partnership to strengthen fashion value chains and boost job creation" in Burkina Faso and Mali targets the sustainable development of micro suppliers and small entrepreneurs in selected garment relevant value chains. It is focussing on traditional handicraft, leatherwork, clothing, and weaving, investing in technical skill development and in building micro-artisanal entrepreneurship, thus securing a better livelihood for the respective communities, including women. Marginal suppliers are supported in their value chain integration in upscale or niche markets, such as the international fashion and design market. The project will be implemented by the ITC's Ethical Fashion Initiative (EFI) and implemented under the EU Emergency Trust Fund for AfNCM-JUNE 2017 63

rica75 with a budget of EUR 10 million. Further, a EUR 12.6 million project funded through the Asia DCI regional envelope aims at promoting and facilitating the compliance with and reporting on "International Labour and Environmental Standards in Pakistan's SMEs" in Pakistan. It is now starting to be implemented by the ILO with the World Wide Fund for Nature (WWF-Pakistan). The programme's overall objective, in the framework of the country commitments under the GSP+ scheme, is to promote sustainable and inclusive growth by supporting the economic integration of Pakistan into the global and regional economy, by improving compliance with labour and environmental standards and increased competitiveness. It will focus on the textile and leather sectors which are important driving forces of Pakistan's economic development, and are substantial export income earners and employment providers in the country. For Bangladesh, there is a new programme led by the Agence FranĂ§aise de DĂŠveloppement (AFD) on "Programme to Finance Safety Retrofits and Environmental upgrades in the Bangladeshi Ready-Made Garment (RMG) Sector". The total estimated budget amounts to EUR 63.605 million including a EUR 50 million AFD credit facility and a EUR 6.6 million grant by the EU (Asia Investment Facility). Additional financing from KfW Development Bank (EUR 4 million) and Deutsche Gesellschaft fĂźr Internationale Zusammenarbeit (GIZ) (EUR 3 million) in performance based investment grants and technical assistance is also included in this action. The total investment cost is estimated to EUR 80.805 million. Intervention area 2: Promoting social and environmental best practices Promoting best social and environmental practices is the second intervention area. Events such as the Highlevel Conference on responsible supply chain management in the garment

INTERNATIONAL BUSINESS PAGES sector contribute to identifying and disseminating proven methods globally. Convening and facilitating exchange among multi-stakeholder approaches provides space for dialogue and reporting on progress. This will allow for raising the profile of successful initiatives including best industry practices with a view to disseminate lessons learned, foster collaboration, scale up, or replicate such approaches. On Corporate Social Responsibility (CSR), the Commission provides incentives and guidance for entrepreneurs and SMEs to contribute to their improved business practices and building capacity by facilitating partnerships, developing traceability tools, and demonstrating business cases. Projects such as the EU funded social dialogue joint project on developing a CSR Risk Assessment Tool in the Textile and Clothing Industry by the European Apparel and Textile Organisation (Euratex) and the global union federation IndustriALL Global Union support SMEs and big companies in their responsible supply chain management. The project developed an easy-to-use and accessible CSR Risk Assessment Tool, implemented in accordance with a set of internationally recognised standards on CSR. It is currently prepared for dissemination, and also highly relevant in the context of implementing the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector. As to environmental best practices, aspects to be considered include water issues (consumption quantities, water recycling, and pollution prevention), use of toxic substances in e.g. the colouring process (with a view to minimising their use and seeking possible more environmentally-friendly alternatives), environmentally responsible sourcing of raw materials, proper waste management as well as waste prevention and recycling of textiles. The Switch to Green initiative, which encompasses regional programmes in Asia (see also section 4.2), the Mediterranean and Africa77 contributes to

the EU's commitment to "support the transformation towards an inclusive green economy which generates growth, creates jobs and reduces poverty". Under this initiative, which promotes sustainable consumption and production practices by the private sector through direct support to SMEs and through the development of enabling policy frameworks, several projects target the garment industry specifically. An example is the "Greening of SMEs in Leather Clusters and the Leather Tanning Industry" project, with a budget of EUR 248 000, implemented by the Common Market for Eastern and Southern Africa Leather and Leather Products Institute (COMESA LLPI) based in Addis Ababa, Ethiopia in 2015-2016. The project seeks to improve SMEs' competitiveness through energy, space and machinery optimisation; promoting recycling and reduction in the use of chemicals; and developing a roadmap for improving effluent management and the quantification of carbon footprint of the leather sector. New funds have been allocated in 2016 to SWITCH Asia (EUR 34 million) and SWITCH Africa (EUR 20 million).

criteria which can also have positive effects on the workforce, e.g. the reduction/ban of hazardous substances.

The Commission has been encouraging innovative solutions that increase recyclability of textiles and the recovery of secondary raw materials under various EU funding programmes. For example, the on-going RESYNTEX research project under Horizon 2020 aims at creating industrial symbiosis to boost the production of secondary raw materials from unwearable textiles. Environmental best practices are also promoted through EU initiatives and tools such as the Eco-Management and Audit Scheme (EMAS), with the Sectoral Reference Document on Best Environmental Management Practice for the Retail Sector. The pilot on Environmental Technology Verification (ETV) focuses in particular on water, energy and materials technologies, the most relevant for the garment sector. Finally, the ongoing work on Green Public Procurement criteria for the textile sector focuses on environmental

Outreach events include the first Highlevel Conference on responsible supply chain management in the garment sector that took place in Brussels on 25 April 2016 with more than 200 participants, including the Commissioner for International Cooperation and Development, Neven Mimica, and the Commissioner for Employment, Social Affairs, Skills and Labour Mobility, Marianne Thyssen, Members of the European Parliament, high-level representatives from partner countries, EU Member States' representatives, businesses, civil society, and International Organisations. The objectives of this event were to promote successful existing initiatives, including from Member States and industry, and to continue the dialogue at the EU level. It offered a platform for garment workers and their representatives in Europe. The

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Intervention area 3: Reaching out to consumers and awareness raising Reaching out to consumers and awareness-raising on how garments are made can increase transparency and promote sustainable and responsible consumption. The EU's importance and influence as an export destination for garments and textiles implies that consumers can be game-changers if increased awareness translates into higher demand for sustainable fashion. Campaigns like the global movement FashionRevolution advocating for more transparency in the garment value chain particularly via social media are also a case in point. Consumers thus play a forceful role in supporting efforts for better labour and environmental standards and product safety in garment value chains. Videos and other communication material contribute to such efforts. For instance, the video "Tracing a T-shirt from cotton field to shelf" published in March 2017 sheds light on how our clothes are made.

Contd. On Page 66

INTERNATIONAL BUSINESS PAGES Permitted Enterprises by Myanmar Investment Commission(5/2017) Name of Company

Location

Type of Investment Business

Form of Investment

Date of issue

Hundred Garment (Myanmar) Company Limited (China)

Yangon Region, Shwe Pyi Thar Township

Manufacturing of Garment on CMP Basis

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Cixing Knitting (Myanmar) Company Limited (China)

Yangon Region, Hlaing Thar Yar Township

Manufacturing of Knitted Garment on CMP Basis

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Springair Ace Company Limited (China)

Yangon Region, North Okkalapa Township

Manufacturing of Garments and Various Designs of Knitwear on CMP Basis

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Thong Thai Textile (Myanmar) Company Limited (Factory-2) (Thai)

Yangon Region, Hlaing Thar Yar Township

Manufacturing of Sportswear & Casual Wear on CMP Basis (Factory-2)

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Myanmar Qun San Company Limited (Korea)

Yangon Region, Hlaing Thar Yar Township

Manufacturing of Garment on CMP Basis

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Nan Tong Great One Myanmar Company Limited (China)

Yangon Region, Hlaing Thar Yar Township

Manufacturing of Garments on CMP Basis

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Kaixi (Myanmar) Lingerie Industrial Company Limited (China)

Yangon Region, Hlaing Thar Yar Township

Manufacturing of Brassieres & Briefs on CMP Basis

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Sinoproud (Myanmar) Garment Company Limited (China)

Yangon Region, Hlaing Thar Yar Township CMP Basis

Manufacturing of Garments on

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Asian Just Company Limited (Japan)

Yangon Region, Shwe Pyi Thar Township

Manufacturing of Garment on CMP Basis

Joint Venture

(5/2017) 13-3-2017 Myanmar Investment Commission

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INTERNATIONAL BUSINESS PAGES Permitted Enterprises by Myanmar Investment Commission (5/2017) Contd...... Name of Company

Location

Type of Investment Business

Form of Investment

Date of issue

Evergreen Sports Myanmar Limited (Hong Kong)

Yangon Region, Shwe Pyi Thar Township

Manufacturing of All Kinds of Bag on CMP Basis

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

CMF Myanmar Company Limited (Korea)

Yangon Region, Hlaing Thar Yar Township

Manufacturing of Bag on Wholly CMP Basis (Factory-2) Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Yeo Yi (Myanmar) Footwear Manufacturing Company Limited (The United Kingdom)

Yangon Region, Hlaing Thar Yar Township

Manufacturing of Varieties of Shoes on CMP Basis

Wholly Foreign Owned

(5/2017) 13-3-2017 Myanmar Investment Commission

Tian Cheng Pen Jiao Mian (Myanmar) Company Limited (China)

Yangon Region, Hlaing Thar Yar Township

Manufacturing and Sale of Synthetic Resin For Clothing such as Jacket and Warm Coat

Joint Venture

(5/2017) 13-3-2017 Myanmar Investment Commission

Contd. From Page 64 'marketplace of ideas' allowed stakeholders, including civil society organisations, to network, share knowledge and showcase their activities. Further, during the European Development Days (EDDs) in Brussels in June 2015, the Commission organised a lab debate on the "Responsible management of supply chains – the case of the garment sector". During the EDDs in June 2016, a brainstorming session was jointly organised with the European Network of Political Foundations (ENoP) and the Trade Union Development Cooperation Network (TUDCN) on "Responsible production and consumption in the garment value chain". EU initiatives and tools such as the pilot on Product and Organisation Environmental Footprint (PEF/OEF), addressing leather, footwear, t-shirts and the retail sector, and the EU Ecolabel (for textiles products and footwear), are examples of ongoing work of reach out to consumers by communicating environmental information and awareness

raising. The FashionRevolution hashtag #whomademyclothes was the no.1 global trend on Twitter on 24 April 2015, the 2nd anniversary of the 2013 Rana Plaza building collapse, reaching more than 60 million people worldwide.

achieve change at a global scale. The new OECD Due Diligence Guidance for Responsible Business Conduct in the Garment and Footwear sector provides a sector-specific reference standard that now needs to be implemented.

FUTURE PERSPECTIVES

Such guidelines & standards can guide EU international cooperation efforts when engaging with partner country governments and the private sector.

In order for EU development cooperation to positively contribute to sustainable garment value chains, efforts will be directed at supporting the thematic priorities and the identified intervention areas. However sustainable improvements cannot be achieved without the commitment of governments to set the appropriate framework conditions (i.e. accession and adherence to the relevant international agreements) and without strong business engagement. For an effective, credible and coherent engagement, global guidelines and internationally agreed standards and codes of conduct on human rights and social and environmental standards beyond the national and European level could be strengthened or developed to NCM-JUNE 2017 66

The following action areas would position the EU as a driver for change: 1. Continue engagement with partner countries and in multilateral fora 2. Continue to share information and dialogue 3. Continue the engagement with the private sector The Commission is committed to effectively promote and integrate sustainability in the garment sector – with its economic, social and environmental dimensions – in its development actions.

INTERNATIONAL BUSINESS PAGES

Bangladesh: Consolidating Export-Led Growth of RMG Sector Country Diagnostic Study by the Asian Development Bank Astounding growth in Bangladesh’s ready-made garments (RMG) sector - growth that has created millions of jobs and should be considered a great success - has occurred at the expense of other viable export sectors. Despite its huge success in achieving high export growth, Bangladesh will have to retool its main economic sectors in the medium term if it wishes to increase its participation across global value chains. Thrust sectors may allow Bangladesh to move up the production value chain by developing expertise and niches in related areas. At the same time, the manufacture of textiles and garments historically has been the source of early industrialization across the world (see Goldin 1990, for example). This brings up the issue of whether the right development strategy is to support specific sectors that have promise, or whether the use of indirect support strategies that could benefit all sectors - including services and nontradables - is more effective. For Bangladesh, the initial wave of government industrial policy support to the garments sector, in the 1980s and 1990s, inadvertently eclipsed indirect strategies that could have benefited all sectors. Over time, support strategies for thrust sectors in general were reinforced, but certain policy incentives for the RMG sector—which should have been gradually withdrawn by the mid-2000s to allow other priority sectors to catch up with RMG—did not occur. For example, the gradual phaseout of corporate income tax. This altered the policy landscape and created a business environment biased against the development of other exports. We argue that more than promoting thrust sectors, the government needs to remove the disincentives to non-RMG exports and potential export sectors that arise from the current trade regime. Despite past debate, a lack of data and the difficulty of measuring productivity in an economy and how firms interact across sectors is a significant barrier to understanding the effects of diversification policies. Here, we examine Bangladesh’s export sectors in detail—particularly RMG—their competitiveness, and their links to the domestic and nontradable sectors. By scrutinizing these links, the analysis makes inferences about the structural transformation taking place, how it compares to other countries, and more importantly, what influence industrial policy has had on this transformation. We find that, unlike other countries, Bangladesh has not been able to develop strong internal or external linkages that would enable a more diversified productive transformation, including insertion into global production chains. The conclusion is that while the RMG export-promotion policies of the 1980s and 1990s were a resounding success, they should have been reevaluated and leveled with other sectors during the 2000s, as this may have enabled a resource reallocation to other promising sectors and to infrastructure services. In addition, for Bangladesh to engage in global value chains and be vertically integrated into cross-border production activities, it will have to more actively develop a tradition of producing intermediate goods such as machinery components and auto parts. The Ready-Made Garment Sector in Bangladesh: Huge Success but Challenges Ahead Growth of RMG exports has been astounding by any measure. The RMG sector in Bangladesh was initiated in the late 1970s, with nine export-oriented garment manufacturing firms earning less than a million dollars a year. In 1980, Bangladesh occupied the 76th position by the US dollar value of clothing exports, or less than $200 million. By 1995, it was 22nd at $1.969 billion. By 2014, it had almost overtaken Italy as the secondlargest clothes exporter

in the world by $ value, at over $25 bn, behind the People’s Republic of China (PRC). And by 2014, it was the clear leader in exports per person, at $155 compared with $136 in the PRC. Growth of the textile and RMG sectors has led the way in manufacturing. This largely explains how the share of industry in GDP went from 18.3% in the mid1970s to 27.6% in 2014. Even a minuscule share of the RMG global market can create millions of good jobs at home, directly employing over 4 million workers.

Most commonly, the nontradables or NCM-JUNE 2017 67

items in the nontradables sectors consist of locally rendered services, including health, education, retail, and consumption. In 2013, the textile and clothing sector accounted for 51% of manufacturing employment (equal to 8.4% of total employment), up from 39% in 1999 (3.7% of total employment). Between 2006 and 2013, the number of RMG employees increased 151% to almost 3 million. A recent report by McKinsey & Company (2011) confirms the notion that the prospect for 12% growth of RMG exports between 2015 and 2025 is a very realistic proposition.

INTERNATIONAL BUSINESS PAGES Yet, as noted, such astonishing growth has come at the expense of diversification. The share of RMG and textile exports in 1980 was 57%, but by 2014 it was 81% of total exports (Figure 5.1). Other manufacturing exports, such as footwear and pharmaceuticals, grew quickly in the 10 years through 2015, but their size is dwarfed by the RMG sector. Moreover, much of the domestic investment and foreign direct investment (FDI) in manufacturing has gone to RMG ($351.6 million compared with $25.7 million for pharmaceuticals in 2015). By destination, exports have diversified somewhat. The major markets for Bangladeshâ&#x20AC;&#x2122;s knitted and woven RMG products in 2015 were the 27 countries of the European Union (60%), the United States (21%), and Canada (4%). Growth of exports to other Asian markets such as the PRC; Japan; the Republic of Korea; Taipei,China; and Turkey has created diversification by destination. Because it will be less subject to demand shocks from any particular region or country, this is a positive development. Advantages of the Textile and Garments Industry In structural transformation, textile and garments manufacturing has historically propelled development in many countries and brought indirect benefits to society. For example, the PRC, the Republic of Korea, Viet Nam, and even the northeast United States in past centuries. First, it relies on employment and the use of machines. Second, the prices of textiles and garments are fairly stable (unlike some agricultural commodities and natural resources), in part because clothing is a basic commodity that is always in demand. RMG sector growth occured simultaneously with migration of idle unskilled labor from rural to urban areas. This allowed Bangladesh to put these resources to the best possible use. Furthermore, RMG sector jobs are responsible for

Figure 1: Bangladesh Exports of Clothing Products, 1995â&#x20AC;&#x201C;2014

Source: World Trade Organization Statistics database, (accessed November 2015), http://www.stat.wto.org the rise in female employment from 7.9% of the total in 2000 to 16.8% in 2013 (see Chapter 6 of ADB 2016b). In turn, this has led to women marrying and having children later, and contributed to reducing the fertility rate. Moreover, it has led to a new generation of more educated women and, as income and education of the mothers grows, so do the health and work opportunities of their children. Finally, evidence exists that female labor force participation increases in developing countries that locate export-oriented firms with factory jobs requiring precision (see Mammen and Paxson 2000). This is particularly true in areas where women have not been previously employed and where strong competition for export markets means that wages may be high enough to attract women but not high enough to induce men to switch jobs and work in that sector.

three-fourths of which were mediumsized and large firms and directly employed 2.8 million people. Production directly engaged 92% of them. Moreover, among production workers, 68% were female. Male managers outnumbered females by a ratio of eight to one.

In the 2012 Survey of Manufacturing Industries, the RMG sector was home to 6,984 firms in the formal sector,

The RMG sector mostly operates within an SEZ, as all imported inputs came in under a bonded system duty

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This transformation through garment exports did not occur in a vacuum: the government decided very early on to promote the sector and to provide incentives to get it where it needed to be. As in many countries, an important part of that strategy entailed designing special economic zones, areas in which regulations, incentives, and basic infrastructure could be provided to ensure conditions for success. This also made it easier for FDI to engage in production. Box 1 discusses the setting up of special economic zones (SEZs) in Bangladesh.

INTERNATIONAL BUSINESS PAGES free. A few other selected exports, such as leather and non-leather footwear, and, recently, shipbuilding, have also been given the facility of bonded imports facility.

Republic of Korea technology was quickly adapted and transferred to other local investors through competitive hiring of managers and trained labor.

In addition to SEZs, a series of policies and external factors over the years contributed to the stellar performance of RMG exports.

2. The policy of creating a special bonded warehouse system designated RMG as a “100% export-oriented” industry and created a dutyfree environment for the sector even though huge tari and nontari barriers aected the rest of the economy. Moreover, eective taxation of earnings from RMG was very low and income from RMG enterprises is exempt from taxes.

1. The Multi-Fiber Arrangement, which allowed Bangladesh to impor t quota-free until 2005, provided the initial impetus. Faced with quota restrictions, the Republic of Korea firm Daewoo entered into partnership with Desh Garments of Bangladesh to produce garments in Bangladesh using the underused Bangladesh import quota to the United States (US) and Europe. Improved market access to the US and European markets quickly enticed other entrepreneurs, and the

3. To keep the sector free from inefficient tax administration, and yet raise revenue from a highly profitable sector, in 1992, the National Board of Revenue adopted a policy of imposing a one-o tax on export proceeds of 0.3% (called advance

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income tax or Tax Deducted at Source), which was convenient to collect and administer. Other exports subject to this tax paid a rate of 0.8%. Over the last years, the tax rate on the RMG exporters was slowly increased to 0.8% of export volume in the FY2013 budget, but then temporarily lowered to 0.3% in FY2014 to mitigate the higher costs incurred by the sector due to political disturbances. In June 2015, the rate was raised to 0.6% and equalized with other export sectors - as their rate was lowered from 0.8% to 0.6% (Bhowmikm and Bala 2015). 4. Other specific conditions also helped foster the sector’s growth. The Ministry of Finance established a system allowing the use of backto-back letters of credit by which imported inputs were procured

INTERNATIONAL BUSINESS PAGES Box 1: Bangladesh Special Economic Zones The establishment of special economic zones (SEZ) was a key institutional reform to help support the industrialization process early on, and they have become integral to the economy-wide policy agenda. The main objective of export processing zones (EPZ) is to provide a special district for export-producing sectors and isolate them from common domestic problems. Since 2010, SEZs also have been instituted in dierent geographic locations to encourage rapid economic development through the increase and diversification of industry, employment, production, and exports. The success and growth of the SEZs add to the puzzle of why there is so little foreign investment outside of textiles and garments. The Bangladesh Export Processing Zone Authority, a government agency administered through the Prime Minister’s Office, was created by an Act of Parliament in 1980 to develop, operate, and manage dierent EPZs. As Bangladesh struggled with low growth after independence, the government adopted an open door policy to attract foreign investment. The authority was created precisely for the purpose of promoting, attracting, and facilitating foreign investment into EPZs. An EPZ is a special area where investors find a congenial investment climate free from cumbersome procedures. By 2015, the Bangladesh Export Processing Zone Authority covered 935 hectares of industrial space, housing 497 enterprises with total investment of $3.6 billion (see table). Garment production involves 225 enterprises (almost 50% of the total), 104 produce yarn, fabrics, and textiles, and 28 produce footwear. Nineteen enterprises invest in the production of high-value electrical and electronic products, with 10 of these Japanese-owned. Export output from EPZs has risen steadily, and comprised more than 24% of total exports by 2015. Exports from EPZs as a share of gross domestic product rose from 3.4% in 1990 to 6.5% in 2015. Bangladesh Export Processing Zone Authority Key Indicators

GDP = gross domestic product. Note: Based on fiscal year 2015 data. Source: Bangladesh Export Processing Zone Authority. http://epzbangladesh.org.bd/investments. (accessed May 2016). Bangladesh Economic Zone Authority (BEZA) was the last public–private entity established to provide these services and emerged from an Act of Parliament in 2010. With good locations and incentives in the pipeline, BEZA should attract more investors. BEZA controls eight economic zone sites, five being government-owned clusters. Special economic zones are enclaves separated from the rest of the economy with special tax policies to attract more investors, local and foreign. The various fiscal and non-fiscal incentives and facilities are attractive to prospective investors. For those industries established before 2012, a 10-year tax holiday applied, but when enough enterprises and enclaves were established, tax holidays were amended depending on the EPZ location (see table). While incentives are still generous, there is an increasing tendency to phase them out for established firms. The SEZs are designed to provide a one-stop shop that is transparent, accountable, and free of corruption, red tape, and favoritism (ADB 2015b). Generally, infrastructure services (such as electricity, gas, water, and storage facilities) are good except for some hitches on transport and port services and deteriorating access road to the main road in Karnaphuli. EPZs should continue to be a core component of Bangladesh’s industrial policy. Generous incentives and a very open legal environment for full foreign ownership will continue to provide an opportunity for investors to establish themselves in the country. Recently, the government approved 37 new public, private, and science and technologybased SEZs, and many are already administered by the private sector. Moreover, the government should consider mainstreaming to the rest of the economy some of the oerings to SEZs such as land acquisition, water and electricity services, and skilled labor. Source: Authors. NCM-JUNE 2017 70

INTERNATIONAL BUSINESS PAGES against export orders. This saved the industry substantial working capital costs and foreign exchange and provided RMG exporters with a relative shield against exchange rate fluctuations. Non-RMG exporters, on the other hand, did not benefit from this incentive. Before determining the source of the competitiveness of RMG compared with other sectors of the Bangladeshi economy, the following section looks in more detail at the structure of the RMG sector and its position in the global clothing industry. Garment Sector’s Place in the Global Economy and the Fashion Industry Clothing is more than a necessary good. Far from just a garment for warmth or protection against the elements, clothes can be a form of cultural identity, a signal of income status, or a form of self-expression. Between 1980 and 2014, world trade in clothing grew almost sixfold to $986 billion. In 2012, the global apparel market was valued at $1.7 trillion, and employed about 75 million people. Forecasts indicate the global apparel sector, assuming current trends, will reach $2.11 trillion in nominal terms by 2025, led by the PRC. Short product life cycles, vastly dierentiated products, and consumer loyalty through branding and competitive price points are just some of the features of today’s ever-changing market for clothing. The industry has thrived on a liberalized global trading environment that allows parts of the manufacturing process to be outsourced to suppliers outside national borders. Such arrangements eventually propelled the importance of the RMG sector in countries’ exports, including Bangladesh, Brazil, Cambodia, the PRC, India, Indonesia, Madagascar, Sri Lanka, and Viet Nam. Moreover, clothing production forms a substantial part of GDP at 35% in Bangladesh and 13% in Cambodia. Productivity of the RMG sector— based on low fixed costs and labor-

intensive manufacturing processes put Bangladesh on the path of exportoriented industrialization. RMG exporters had access to low cost labor from the huge labor surplus brought about by rural–urban migration. Required RMG labor training is minimal and can easily be honed on the job. The laborcost advantage relative to competitor countries tremendously increased the prospects for expansion. Labor cost increases in the PRC, particularly since the mid-2000s, have also made Bangladesh a relatively more attractive destination for RMG export production. No survey data exists measuring the profitability of RMG firms in Bangladesh, but indirect evidence suggests that owners reap a significant share. Variations in average compensation are apparent at every employment category and by gender. Production workers, who make up most total employment, account for only 35% of total compensation expenditure. Managers and administrative staff, who make up less than 4% of RMG employment, account for 24% of total compensation, while factory owners, who comprise less than 1% of the total, have a 17% share of total compensation. Compensation is the sum of salaries and wages, cash and noncash benefits, and social security contributions. According to a survey on wage rates and earnings (BBS 2011), average monthly salaries in the RMG sector were Tk6,161 for men but only Tk4,264 for women, or less than 70% the average male rate. A similar gap is evident in all other sectors but the private health sector (ADB 2016b). Despite Bangladesh’s low rankings in the World Bank’s 2016 Doing Business Report, garment orders from foreign firms show no signs of abating. Bangladesh is among the top 5 countries preferred by global garments retailers, even after factoring in the potential for higher labor costs due to wage pressures between 2013 and early 2016. Moreover, unlike other NCM-JUNE 2017 71

Asian garment manufacturing countries, most factories are owned and operated by Bangladeshi nationals. In surveys of clients, it is quite apparent that foreign demand for Bangladesh RMG products stems not from its efficient business environment but from its ability to produce garments at rockbottom prices (see Lu 2015). RMG Operations in the Global Apparel Value Chain Context By nature, the fashion business is a classic “buyerdriven” global value chain. Unlike producer-driven value chains, where scale, volume, and technology are major determinants of profits, the buyer-driven global apparel value chain brings profit opportunities for specialized services at the beginning and end of the processing. In other words, retailers, designers, and managers leverage their talents in highvalue research, design, sales, marketing, and financial and retail services to strategically link overseas factories and traders (the supply side) with their mass-market product lines. It includes importers, wholesalers, business associations, and a slew of service providers—logistics, consultancy, academic institutions, law firms, transport, testing and certification companies, and promotion agencies. Bangladesh RMG firms are only one component of this complex global value chain. Bangladesh specializes in cut-make-trim process, the lowest stage in the value chain (Figure 2). Many garment-exporting developing countries have adopted the cut-maketrim model. In this segment, manufacturers cut and sew woven or knitted fabric or knit apparel directly from yarn. It includes a diverse range of makers of full lines of ready-to-wear and custom apparel, and contractors (performing cutting or sewing operations on materials owned by others) or jobbers and tailors who manufacture custom garments for clients. Materials may be brought in by the foreign buyer, bought from another establishment, or made in-house. Contract manufacturers often have a variety of customers and

INTERNATIONAL BUSINESS PAGES do business on an order-by-order basis. In cut-make-trim apparel markets, the focus is solely on production to the buyer’s specifications.

Curve of Value-Added Stages in the Segmented Apparel Global Value Chain

Product focus tends to be very narrow, making price the ultimate deciding factor between buyer and seller. This production value chain also puts enormous pressure on garment factories to deliver large orders on time, creating a huge incentive for subcontracting. Clients generally want the batch jobs produced in one factory, but the size of the orders is beyond the average capacity of the factories (Morgan Stanley 2015). In the context of a low-income country where working capital is often provided by would-be suppliers, a firm cannot aord to turn away an order of tens of thousands of T-shirts from a giant retailer like Walmart, for example. Unauthorized subcontracting to smaller, uninspected factories is not supposed to happen, but may sometimes be inevitable. Suppliers do not turn down giant orders because they fear they will not be considered for future orders. Subcontractors, the lowest on the ladder, also often compete for orders to keep their businesses afloat. The lack of an accurate figure on the number of garment firms in Bangladesh is likely related to the intense competition to provide on-time orders for exports. The Bangladesh Garments Manufacturers and Textiles Association has nearly 4,000 member firms, and only those registered with this politically powerful association are permitted to export (BGMEA 2015). Nonetheless, the Survey of Manufacturing Industries 2012 (BBS 2012) reported that 6,984 garment and textile firms have 10 or more employees. Many of these may work solely for the domestic market, but with such attractive incentives many also want to supply export markets, either directly or indirectly. After a recent government inspection campaign in 2013, it was found that many fraudulent firms existed (set up to borrow from banks and

Preproduction: intangible

Production: tangible activities

Postproduction: intangible

R&D = research and development. Source: ADB based on Fernandez-Stark and Gereffi (2011). dissolve), while others were shut for violating building safety regulations. What is clear is that some of the larger firms continue to grow and profit considerably from this thriving global trade. Almost half of Bangladesh’s 5,000 garments factories were subcontractors in 2013, according to anecdotal evidence from media interviews with local industry officials. Only about 2,000 factories get export orders. In sum, there is very little clarity about the true numbers, most likely because of the temporary nature of some of the subcontracting. For the buyer, not knowing what factory actually produced its specific order could be advantageous as it distances the buyer from any negative conduct in the arrangement between the contractor and the subcontractor. The contractor is, of course, responsible for ensuring uniform quality. Pressure to produce within short turnNCM-JUNE 2017 72

around times and at very low prices provides the “perfect storm” for production mishaps. To maintain profit margins, RMG firms often succumb to the temptation to cut corners by hiring very young workers (around age 15) and requiring workers to render overtime work. Until recently, operational expenses were kept to a minimum by not conforming to international industry standards and disregarding safety procedures. The resulting situation can range anywhere from substandard construction of factories, to grave working conditions, to high-risk and fireprone work structures. It was not until the April 2013 Rana Plaza incident, in which 1,138 workers were killed and more than 2,500 injured, that the entire garment industry was forced to take a hard look at its practices and the many times it had sidestepped the upholding of standards, compliance, and safety procedures.

INTERNATIONAL BUSINESS PAGES Figure 3: Process Flow in Garment Manufacturing: Made in Bangladesh

Arrangements with subcontractors, whether known or unknown to the buyer, are often de rigueur to meet bulk orders.

BOM = Bill of materials for the order, PO = purchase order. Source: Priyambada (2014).

Since then, wages for RMG workers have risen by about 40% up to 2014 and compliance with basic safety codes have been improved. However, higher wages and the push to meet safety standards has led to the substitution from unskilled labor toward machinery production. Bangladesh, like many top-exporting countries, has increasingly supplied garments to a very active tier in the fashion industry - fast fashion. Defined as “lowcost clothing collections that mimic current luxury fashion trends,” fast fashion has been instrumental in taking the entire fashion industry to a $2.5 trillion sector. Zara, a leading clothing brand and the topperforming arm of Inditex Corporation first ventured into fast fashion when the brand moved from Spain across the Atlantic in 1989. H&M, Mango, Uniqlo, Gap, Topshop, and Forever21 are some of the other prominent brands that stand out in the global fast fashion landscape. The business model is referred to as “cheap chic” and involves the rapid translation of design trends into clothes that make it to store racks quickly but do not linger. Fast fashion companies thrive on fast cycles: rapid prototyping, small batches combined with large variety, more effiicient transportation and delivery, and merchandise that is

presented “floor-ready” on hangers with price tags already attached. The idea is to provide consumers with accessible and aordable clothes at convenient prices, marketed as highly wearable, on-trend apparel that makes the impression of being here today but probably gone tomorrow. For retailers, this transformation in buying habits has translated into huge revenues from skyrocketing sales. Between 2008 and 2014, Zara’s revenues rose from $10 billion to $19.7 billion, H&M revenues increased from $10.8 billion to $20.2 billion, and Fast Retailing (Uniqlo) increased its revenues from $6 billion to $16.6 billion. The sales of these three companies together add up to about a third of Bangladesh’s GDP. Segmented Global Value Chains Due to the lack of strong links between apparel manufacturers and the higher value processes in the production chain illustrated in Figure 3, the fast-fashion value chain is effectively “segmented.” The production of a fast-fashion garment could be described as a global value chain, and the stage of garment manufacture (at the bottom of the curve in Figure 3) occurs in Bangladesh. It is denoted as a segmented value chain because of the broken link of accountability once the garment is shipped abroad. The sector’s production proNCM-JUNE 2017 73

cess is completely decoupled informally from the fast-fashion production process. This segmentation also exacerbated the dissociation between the unit cost of production and its retail price, and Bangladesh’s ability to move up the value chain. As long as the big buyers maintain price-setting power, garment makers have no incentive to upgrade facilities or enhance workers’ skills because race-to-the-bottom cost-cutting measures will always take precedence to guarantee a firm’s survival. Moreover, because of the focus on meeting orders on time, firms have little leeway to become more proactive at anticipating buyers’ needs. Critical activities that could help Bangladesh RMG move beyond the cut-make-trim template, such as investing in research and development and developing local designing and pattern-making capabilities, are not pursued. RMG workers have limited exposure to technical know-how in the knitwear industry because they have few opportunities for advancement. These basic RMG goods produced in Bangladesh constitute only a limited share of the entire global value chain, unlike those produced in the PRC. After accounting for the imported content of basic RMG goods, Bangladesh ends up netting only a small share of the value added: a pair of jeans that costs $1.50

INTERNATIONAL BUSINESS PAGES to make could sell for more than $20. The cost of making a pair of jeans ranges from about $1.30–$1.40 per piece in Bangladesh and $4–$5 in India, where there is generally more design input. Bangladesh is still confined mostly to manufacturing of T-shirts and other basic garments because the manufacturing base of its RMG sector is not diversified enough to allow for development of higher-valued garments. More importantly, the basic RMG products have very low price points ex-factory, whether the final product is sold for $6 at a Walmart shop in New Jersey or £30 (about $44) at Barney and Taylor in London. The sustainability of the fast-fashion industry will need to be examined in the context of demand and the type of goods or services that Bangladesh is producing. Staying at the low end of the value chain and having an advantage in that niche is not the best recipe for developing middle-income status. The good news is that the comparative advantage revealed by the success of RMG is the capacity to overcome logistical and infrastructure deficiencies to produce clothing to specifications and on time; and those are the types of capabilities that can ensure quality in this sector or create advantages in other areas of production. Major data and definitional limitations exist for measuring unit labor costs of RMG manufacturing. The main one is the difficulty of relating the value of the garment made to a final price. There is such a variety of clothes, but even if one is comparing similar quality, base value will depend on where in the market a product is sold. Take something as simple as a T-shirt: if it is sold at Walmart in rural New Jersey for budgetconscious consumers, it is not a fashion item but a basic item. If it is sold as an accessory under a fashionable leather jacket in Barney and Taylor in Mayfair, London, then it is a fashion item and can sell for much more. The price in the latter case is higher both because part of the price reflects

real estate costs of the store and compensation to fashion designers, but also because it is directed to customers who are not budgetconstrained and, perhaps, its purchase evokes the luxury feel of the model in the store with the leather jacket. Indeed, the nature of clothing demand evokes a lot about the evolution of Bangladeshi exports. (Box given on the next page.) Measuring Comparative Costs The comparatively low production costs are the prime reason it is so difficult for Bangladesh to move up the fast-fashion production chain. But analytical tools applied on new data to evaluate whether Bangladesh has a comparative advantage globally in the RMG sector indicate that the comparative advantage does indeed stem from its very low-cost and labor-intensive structure. Moreover, taken with the generous incentives and advantages of the sector, the implication is that the RMG sector is highly profitable compared with others in Bangladesh.

The main findings are as follows: 1. Bangladesh has had a strong comparative advantage in knitted and woven RMG products for some time, and the position for woven RMG products has improved. 2. Bangladesh has a comparative advantage in home textiles but not in cotton yarn or fabric. This is understandable in that raw cotton is an imported product and the cost advantage from cheap labor does not fully offset this disadvantage. The low-cost production of raw jute relative to world market prices makes jute the natural leading export in the area of comparative advantage for Bangladesh. RMG products are ranked second. 3. In the EU market, where Bangladesh enjoys a dutyfree, quota-free facility under the “everything-butarms” preferential arrangement, Bangladesh prices are by far the lowest. This happened despite the average rise of 40% in wages NCM-JUNE 2017 74

in the RMG sector in the 3 years to 2014. The conclusion is that for these basic garments, Bangladesh has not lost competitive advantage over time, but gained somewhat as wages and prices in all other comparators also rose. 4. Data show that Pakistan has improved its position recently thanks to the grant of duty-free, quota-free facility by the EU. What is most striking is the significant appreciation in export prices of the PRC garments in 2014 compared with 2002, when the PRC export prices were the lowest among the major exporting countries. What the data show is consistent with the argument that wages in the PRC have doubled in the past 10 years. Much the same conclusion can be derived from the export price data from the US market, where Bangladesh and Pakistan do not enjoy a duty-free, quota-free facility; rather their garment exports are subject to tariff peaks of 15% or more. 5. Bangladesh, with the caveats regarding quality or style dierences, enjoys significant competitive advantage in a wide range of RMG products. To the extent that RMG is intensive mostly in low-skilled labor, and that we can assume that a large percentage of the inputs are related to labor costs, price can be a good proxy for labor costs. Lack of Diversification and Concentration in RMG in Bangladesh From a macroeconomic and stability perspective, “putting all your eggs in one basket” leads to sharp fluctuations in economic activity (booms and busts) that are exacerbated if the commodity produced by the country is also the one that generates the most foreign exchange, fiscal revenue, and employment. A country should consider various criteria in deciding whether the specialization in one sector (lack of diversification) yields a net benefit or a net cost.

INTERNATIONAL BUSINESS PAGES Can Bangladesh Appeal to Higher-income Consumers? In late November 2015, Kensington Palace released photos of Princess Charlotte of Cambridge, fourth in line to the British royal throne, wearing a pink sweater over a printed dress. Shortly after pictures of the 6 month old royal were beamed to media channels all over the world, stocks of the baby clothes she wore had run out, including those that looked like it. Her mother, Kate Middleton, has made such an impact on the global fashion map that the phrase “Kate eect” was created on her account to describe how items she is seen wearing immediately disappear o the store shelves. Such an impact on demand, though massive, is often short-lived and transitory.

The demand for apparel could be categorized into two types: (i) demand for basic apparel; and (ii) demand for apparel that appeals to individuality and sense of style and is subject to a smorgasbord of factors that influence perception of quality, brand name, style appeal, trendiness, and other product attributes. In the first category, the demand for primary articles of clothing like basic shirts, dresses, and jeans worn regularly is driven by price attractiveness and relative durability. There is very little regard for brand influence. Most Bangladesh garment exports fall into this category. The demand is influenced by levels and changes in two important variables - price and consumer income. This changing structure of demand relative to price and income sensitivities has an important bearing on the trade opportunities for Bangladesh garments. If it keeps exporting the same category of apparel to its traditional markets, even if income rises in those markets, the demand for Bangladesh garment exports are unlikely to increase. Earlier research findings (Raihan 1999) suggest that location of the income increase matters for S. Asian exports: if incomes change by 1% in the EU and Japan, the demand for clothing output in S. Asia rises by 0.25% and 0.02%, respectively. Although garments have become more and more affordable over time, the demand for it suggest that its share of personal income declines as income rises, unlike the demand for, say, IT products.There is some evidence that Bangladesh exports command lower prices because their demand comes from more budget conscious consumers. Because of the diversity of clothes-shopping preferences and the rapidly changing tastes in apparel, clothing demand has also become fragmented and volatile, with different consumers categorized depending on how discerning they are of specific clothing attributes and standards of quality. One can use export prices as an indicator of competitiveness under the assumption that these prices are given by the marketplace and not by some monopoly power of a particular seller or buyer.RMG does not give Bangladesh any monopoly power to dictate prices, because its share in the global market for such exports is barely 5%. In practical terms, even if exporters had the scope to negotiate prices with buyers, they would be unlikely to extract any significant rent. Bangladesh’s export prices are therefore reflective of production costs plus some amount of “normal profit.” Also, since production costs in Bangladesh differ from those in other countries that compete for market share in the destination markets, prices in the destination markets reflect these cost differentials, giving lower-cost suppliers the competitive advantage over higher-cost suppliers. Sources in the RMG industry suggest that Bangladesh exports compete primarily with those from Cambodia, the PRC, India, Indonesia, Pakistan, Sri Lanka, Turkey, and Viet Nam. To benefit sustainably from its garment export performance, Bangladesh needs to be able to shift its production capabilities to cater to the higher value-added category of clothing demand. One possibility is to shift gears toward the domestic market, by beginning lines of fashion that can appeal to the growing and vast Bangladeshi middle class. With exposure to media, they can hit the styles for younger people that also appeal to their sense as individuals. More importantly, this would be a way of developing the types of skills that will allow them to move to the “retail” end of the fashion value chain. This is an important way to test these skills: the company Watsons has done that with appliances, producing refrigerators with features that cater specifically to typical Bangladeshi households, but increasingly using reverse engineering skills to move to other products such as air conditioners, televisions, and motorcycles. The fragmented nature of this individuality-driven apparel category, in turn, makes for a good environment to use branding to drive demand. Particularly for income-insensitive but socially conscious consumers, branding could also be a vehicle to push issues that go beyond the product itself, i.e., ensuring that clothes and leather goods are produced in ways that are not harmful to the environment and the sourcing of materials for its production is transparent. For clothing from Bangladesh, it is a bit of a stretch to imagine consumers getting all worked up about the pollution generated by a $6 shirt. Likewise, consumers who find cheap bargains irresistible may not want to be reminded about the labor and compensation practices in low-income countries where their shirts and jeans are made. The “Made-inBangladesh” campaign has tried to bridge that image gap somewhat, by creating some doubt, juxtaposing a pretty Bangladeshi model that looks like a factory worker posing tight jeans. Suppliers have tried to address this problem of demand volatility by engaging consumers directly. For example, at the point of purchase, sales personnel at Zara ask clients what they like most of a particular type or style of clothing. This information is fed into a central database so in-house designers can immediately use it to design a fresh batch of clothes. Source: Authors. NCM-JUNE 2017 75

INTERNATIONAL BUSINESS PAGES EU to Screen Bangladeshi Goods for Explosives The European Union has slapped new security screening on imports from Bangladesh, a move that is likely to make it costlier for businesses in the South Asian country to sell products to EU nations. Just over half of Bangladeshi exports go to the European bloc, accounting for $18.68 billion in revenues during the last fiscal year. Those shipments, by air or sea, will now have to be screened by bomb-detecting dogs and devices. Bangladesh has none of these facilities, so cargo will have to be routed through a third country where security screening is possible. The move makes Bangladesh the 13th country designated as "-high risk" for EU commerce. It was unexpected, according to Bangladeshi government officials, who said they were given no explanation when informed Monday of the change. The EU ambassador's office in Dhaka did not immediately respond to a request for comment. Last year, Britain, Germany and Australia banned direct cargo shipments from Dhaka's international airport, citing its poor security system. The country has suffered a string of deadly attacks in recent years claimed by extremists targeting perceived enemies of Islam, including bloggers, rights activists, atheists, religious minorities and foreigners. The government has blamed the attacks on home-grown extremists bent on re-establishing Islamic rule in the secular nation. The government has offered little comment about the EU move. But Civil Aviation and Tourism Minister Rashed Khan Menon criticized Brussels for delivering the news as a surprise, and said the government would work quickly to establish an adequate screening mechanism in the country. But getting everything in place could take months.

Women work at Goldtex Limited garment factory inside the Dhaka Export Processing Zone (DEPZ) in Savar, Business leaders are worried about the possible delays in screening, when they are already scrambling to fulfill large orders on short notice despite frequent power outages that shut operations down. Some air shipments from Bangladesh are already being routed through Dubai, Istanbul or Doha for screening, and some sea shipments are going through Colombo or Singapore. "Fresh screening will take at least 10 days, at a time when we struggle to ship goods timely for many reasons," said Mir Mobasher Ali, who exports about $50 million in garments to Europe and Canada every year. "We need to count extra amount for the screening in a third country. That's disastrous for us." Siddiqur Rahman, president of the Bangladesh Garments Manufacturers and Exporters' Association, representing 70 percent of the textiles industry, also described the move as "disastrous." During fiscal 2015-16, the garment industry exported $17.15 billion in goods to the EU - 60 percent of the industry's exports.

BGMEA feels that the garment industry of Bangladesh has been facing variNCM-JUNE 2017 76

Md. Siddiqur Rahman President, BGMEA

ous challenges including increasing production cost, fall apparel prices in global markets, strong currency against dollar. In this situation the one percent source tax on garment exports proposed in the budget for FY 2017-18 should be withdrawn. Also, the corporate tax needs to be brought down to 10 percent for five years, and five percent cash incentive on exports should be given to the sector for the next two years.

INTERNATIONAL BUSINESS PAGES Cotton Market Fundamentals & Price Outlook: Monthly Economic Letter May 2017 from Cotton Incorporate Recent Price Movement After some upward movement in April, most benchmark prices turned lower in early May. After climbing to the upper end of its trading range and testing values near 80 cents/lb in April, prices for the July NY futures contract have decreased in May. Current values near 77 cents/ lb are virtually even with those one month ago. Prices for the NY December futures contract, which are interpreted as a reflection of price expectations with the 2017/18 harvest, also moved higher and lower over the past month. In early April, prices were near 72 cents/lb. By late April, values were near 75 cents/ lb. In early May, prices fell, and current values are near 72 cents/lb. The A Index posted its highest value of the crop year (89.1 cents/lb) May 3rd. Since then, the A Index has eased slightly, with current values near 87 cents/lb. In early April, values were near 85 cents/lb. The China Cotton (CC) Index edged marginally higher over the past month. In international terms, prices rose from 104 to 105 cents/lb. In domestic terms, the prices rose from 15,800 to 16,000 RMB/ton. Chinese futures prices (Zhengzhou Commodity Exchange, ZCE) trended higher throughout most of April, but sharply reversed direction in the second week of May. Values for the most actively traded September futures contract are currently near 15,500 RMB/ ton. Prices for the January futures con-

tract, which reflect price expectations after the conclusion of the current auction from reserves and after the 2017/ 18 harvest, are trading a slight premium to nearby futures prices with current values near 15,700 RMB/ton. Cash prices for the Indian Shankar-6 NCM-JUNE 2017 77

variety decreased in international terms over the past month, falling from 85 cents/lb to 83 cents/lb. In domestic terms, values dropped from 44,000 to 42,000 INR/candy. Pakistani prices were stable over the past month (near 78 cents/lb in inter-

INTERNATIONAL BUSINESS PAGES national terms and near 6,750 PKR/ maund in domestic terms). Supply, Demand, & Trade This month's USDA report is the first to include a complete set of forecasts for the 2017/18 crop year. Estimates indicate that both world production and mill-use will increase in the coming season. The global cotton harvest is projected to increase by 7.3 million bales (+7%, from 105.9 in 2016/17 to 113.2 million in 2017/18). World milluse is projected to increase by 2.6 million bales (+2%, from 113.2 in 2016/ 17 to 115.8 million in 2017/18). Consumption is expected to exceed production for the third consecutive crop year. However, the size of the shortfall is estimated to only be 2.5 million bales, which is considerably smaller than the deficits of 14.4 million bales in 2015/16 and 7.3 million bales in 2016/17. Nonetheless, a production level below mill-use implies a corresponding reduction in ending stocks. The distribution of stocks remains important for the market. China, where government controlled reserves are intermittently available, is expected to reduce supplies by 9.1 million bales in 2017/18 (-19%, from 48.7 million bales to 39.6 million bales. With a slight increase in Chinese mill-use, this drawdown in stocks generates a stocks-to-use ratio of 106%, which remains more than twice the average in the decade preceding the price spike and the massive accumulation of stocks in China. Outside of China, stocks are forecast to increase 6.7 million bales (+16%, from 40.8 to 47.5 million bales). Since this cotton is generally available for trade, the increase in cotton supply outside of China can be expected to exert downward pressure on prices. The stocks-to-use ratio for the world outside of China is forecast to increase from 50% to 57%, reaching its highest level since China joined the WTO (2001). Nearly every cotton producing country NCM-JUNE 2017 78

INTERNATIONAL BUSINESS PAGES is expected to grow more in 2017/18. The largest year-over-increases are expected in the U.S. (+2.0 million bales, from 17.2 to 19.2), India (+1.5 million, from 26.5 to 28.0), China (+0.8 million, from 22.8 to 23.5), Pakistan (+0.8 million, from 7.7 to 8.5), Turkey (+0.5 million, from 3.2 to 3.7), and Australia (+0.4 million, from 4.4 to 4.8). In terms of mill-use, the largest year-over-year changes are for Vietnam (+0.6 million bales, from 5.3 to 5.9), China (+0.5 million, from 37.0 to 37.5), Bangladesh (+0.4 million, from 6.5 to 6.9), Turkey (+0.3 million, from 6.3 to 6.6 million), and India (+0.3 million, from 23.8 to 24.0). Global trade is expected to grow slightly (+3%, from 36.5 to 37.6 million bales). Countries with the largest expected increases in imports include Vietnam (+0.8 million bales, from 5.4 to 6.2), Bangladesh (+0.8 million, from 6.3 to 7.0), Turkey (+0.3 million, from 3.2 to 3.4), and China (+0.2 million, from 4.8 to 5.0). A notable decrease in imports is forecast for India (-0.8 million bales, from 2.5 to 1.8). Among exporters, the largest yearover-year gains are predicted for Australia (+0.5 million, from 3.8 to 4.3), Brazil (+0.3 million, from 2.9 to 3.2), India (+0.3 million, from 4.2 to 4.5). In 2017/18, the U.S. is forecast to export half a million bales less than in 2016/ 17 (from 14.5 million bales to 14.0 million). Price Outlook The market is facing a mix of contradictory forces. Exportable 2016/17 supplies have drawn tight and this has been supportive of nearby prices. Technical factors related to high speculative positions and the large volume of unfixed on-call sales tied to the July NY futures contract may prove to be sources of volatility in the next few months. In 2017/18, the collective market outside of China faces a larger harvest, limited demand growth, and the possi-

bility of a significant buildup in stocks. The potential accumulation of supply outside of China is likely why NY December futures have been trading at a discount relative to nearby prices. Within China, the ability to coordinate the transition from supply sold at auction to the domestic harvest can be expected to influence Chinese price direction. The potential for disruption in supply, such as those experienced last fall, is a likely reason why Chinese (ZCE) January futures have been tradNCM-JUNE 2017 79

ing at a premium to nearby Chinese futures. Globally, it remains very early relative to 2017/18, and the eventual set of supply and demand statistics can be expected to differ from current forecasts. Variables to watch include the weather, the release of any information related to the timing and magnitude of possible increases in Chinese import quota, as well as any other significant changes to government policies in major countries.

INTERNATIONAL BUSINESS PAGES VF Corporation Prohibits Use of Fur in Products, Emphasizes Ethical Treatment of Animals with New Materials Policy VF partners with The Humane Society of the United States, Humane Society International to release its first animal derived materials policy Greensboro, N.C.: VF Corporation (NYSE: VFC), a global leader in branded lifestyle apparel, footwear and accessories, today released its firstever Animal Derived Materials Policy and announced that its brands will no longer use fur, angora or exotic leather in their products. The progressive new policy, developed in partnership with The Humane Society of the United States and Humane Society International, outlines which animal materials are prohibited and sets formal guidelines for the procurement and use of approved materials by the company’s brands and global supply chain partners. The animal derived materials most often used by VF and its brands are leather, down and wool. “VF believes that all animals within the global commercial supply chain should be treated with care and respect,” said Letitia Webster, VF’s Vice President of Global Corporate Sustainability. “As we continue to promote the development of viable commercial substitutes to animal materials, this policy will help to ensure that the materials we use today are procured from sources that prioritize animal welfare and responsible business practices.” VF’s new policy adds another milestone to the company’s history of animal welfare actions. VF’s Timberland® brand partnered with other footwear brands, tanneries and retailers to form the Leather Working Group to promote

responsible practices within the leather industry. In 2014, The North Face® brand announced its Responsible Down Standard (RDS), a global standard through which any brand can evaluate and certify its complete down supply chain. The RDS was developed in partnership with Control Union and Textile Exchange, which now manages the program. Also, VF participates in programs centered on best practices in the wool industry. "The Humane Society of the United States applauds VF for demonstrating compassionate leadership in the apparel and footwear industries,” said PJ Smith, manager of fashion policy for The HSUS. “This robust policy sets a bar to which others in the industry should aspire.” “We commend VF for committing to stop using fur and other animal materials in their products,” said Kitty Block, vice president of HSI. “As a leader in the global apparel industry, VF’s policy sends an important message to the industry that animal suffering has no place in fashion.” The policy strengthens VF’s broader efforts to use responsibly sourced materials throughout its global operations and supply chain. The company also developed and adheres to existing policies for the purchase and use NCM-JUNE 2017 80

of Conflict Minerals, Cotton Country of Origin, and Forest Derived Materials, in addition to a Restricted Substances List for its chemical management program.

About VF VF Corporation (NYSE: VFC) outfits consumers around the world with its diverse portfolio of iconic lifestyle brands, including Vans®, The North Face®, Timberland®, Wrangler® and Lee®. Founded in 1899, VF is one of the world’s largest apparel, footwear and accessories companies with socially and environmentally responsible operations spanning numerous geographies, product categories and distribution channels. VF is committed to delivering innovative products to consumers and creating long-term value for its customers and shareholders. For more information, visit www.vfc.com.

About The Humane Society of the United States The Humane Society of the United States is the most effective animal protection organization, as rated by our peers. For more than 60 years, we have celebrated the protection of all animals and confronted all forms of cruelty. We and our affiliates are the nation’s largest provider of hands-on services for animals, caring for more than 150,000

INTERNATIONAL BUSINESS PAGES animals each year, and we prevent cruelty to millions more through our advocacy campaigns. Read more about our more than 60 years of transformational change for animals and people. HumaneSociety.org.

About Humane Society International For more than 25 years, Humane Society International has been protecting animals through the use of science, advocacy, education and hands-on programs around the globe. HSI is one of the only international organizations in the world working to protect all animals—including animals in laboratories, farm animals, companion animals, and wildlife—and our record of achievement demonstrates our dedication and effectiveness. Web at www.hsi.org

Vietnam’s garment exports grow despite hurdles The domestic garment industry has faced many challenges in exporting to key markets, such as the European Union (EU) and the United States, but it still has a chance of achieving its export target this year, according to experts. VN garment exports grow despite hurdles, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news First quarter figures appear to support this expectation. Vietnam earned 6.84 billion USD from garment and textile exports in the first quarter of this year, 11.2 percent more than in the same period last year, according to the Vietnam Textile and Apparel Association (VITAS). Vietnam’s textile and apparel sector has set a target of seven percent growth over 2016, with total export earnings of over 30 billion USD.

Workers inside the Nam Dinh Textile Garment Joint Stock Company in Nam Dinh Currently, Vietnamese garment and textile products are available in 40 countries and territories, with major markets including the United States, Japan, the Republic of Korea, China and the EU. VITAS has urged enterprises to optimise the capacity of their equipment to reduce production costs and seek orders for high-quality products. But Dang Phuong Dung of the VITAS advisory board said the growth of export value and volume to the EU was low, with local manufacturers receiving only small orders. Vietnam’s garment industry has also not developed in terms of design, so most textile and garment enterprises have found it difficult to complete export orders from this market. A high import tax rate of 8-12 percent to the EU market is also one of the obstacles facing garment exporters to this market. The EU is the second largest export market of Vietnamese garment products, but it has only captured a 1.9% share of the union’s total import value, according to the association, presenting opportunities for growth. NCM-JUNE 2017 81

However, Dung said, meeting the rules of origin under the EU-Vietnam Free Trade Agreement in terms of preferential tax rate would be the biggest challenge for Vietnamese garment exports. The garment industry expects ASEAN countries, including Vietnam, to sign an FTA between the ASEAN region and the EU, and then local garment enterprises would have more options to get material for garment production from other ASEAN countries, meeting rules of origin under the FTA. According to data of the General Department of Customs, in 2016, the textile and garment sector reached total export value of 23.8 billion USD, an increase of 4.6 percent year-on-year. In particular, the United States continued to be the largest export market of Vietnamese garment products, accounting for 48 percent of the total garment export value. The textile and garment export to the United States has increased by 12-13 percent in value each year in recent years. Many enterprises invested in building textile and dying factories on an extensive and intensive scale to boost

INTERNATIONAL BUSINESS PAGES opportunities in production and business for the planned Trans-Pacific Partnership (TPP), according to the association. But now that the TPP with the United States' withdrawal is no longer in the cards, experts say these facilities would help the textile and garment industry complete production processes and actively source material, focusing on the significant opportunities offered by other FTAs, such as the EU-Vietnam and the Vietnam-Republic of Korea FTAs.

Cambodia's Labour minister praises robust garment sector growth

Garment factory workers produce items of apparel at a warehouse in Kandal province last year. Heng Chivoan

Cambodia's minister of labour has applauded the strong growth and employment levels for the garment and footwear sector, though industry representatives noted a slight slowdown due to increased competition from regional players.

With the combination of other additional benefits, each worker can get paid a total of about $170 per to $181 per month. The Garment Manufacturers Association of Cambodia (GMAC) consists of nearly 600 manufacturers with a total export value of $6.8 billion in 2016, a 9 percent increase compared to 2015.

Speaking at an event commemorating International Labour Day, Minister Ith Sam Heng said Cambodia’s garment sector growth remained healthy despite increased wages for workers. According to Sam Heng, the sector created jobs for 750,000 workers and provided $2 billion in salaries annually with the minimum wage increasing by nearly 10 percent last year to $153 a month. “With the combination of other additional benefits, each worker can get paid a total of about $170 per to $181 per month,” he said. Van Sou Ieng, president of the Garment Manufacturers Association of Cambodia (GMAC), said that the sector is still growing despite tougher competition, mainly from Myanmar and Bangladesh. “Some buyers are now ordering goods from those two countries, cutting down on some orders from us,” he said, add-

ing that the value of exports in the first quarter of this year grew by 4 percent compared to same period in 2016. “We are still able to survive, but the growth rate is at an average level with just single digit growth.” According to Sou Ieng, GMAC consists of nearly 600 manufacturers with a total export value of $6.8 billion in 2016, a 9 percent increase compared to 2015. This was slightly lower than the 10 percent average annual growth over the past several years. However, he added growth for the sector should begin to increase with the expansion of travel goods exports to the US that received duty-free privileges last July. Sou Ieng said that there are now 27 registered travel goods manufacturers in Cambodia. “Some of them are building factories which will soon be operational,” he said. NCM-JUNE 2017 82

“The export value of Cambodian-made travel goods will increase noticeably in the near future.” The Garment industry continues to dominate Cambodia’s exports, accounting for over 10 percent of GDP. Soeng Sophary, spokesperson for the Ministry of Commerce, said yesterday that emerging competitors like Myanmar and Bangladesh pose a challenge for Cambodia, though it remains manageable. Minister Ith Sam Heng predicts the country will maintain the healthy growth for garments and footwear in the medium term, thanks to the withdrawal of the US from the Trans-Pacific Partnership, which benefited competitors like Vietnam. “Whenever our products are able to be exported to markets with duty-free access, we will still be able to enjoy growth.”

INTERNATIONAL BUSINESS PAGES the 50th anniversary of Tyvek®, including the history of Tyvek® and Tychem® protective apparel, visit tyvek50.com.

DuPont Launches New Tychem® 2000 SFR Protective Apparel Garments

For Greater Good™ is the promise of the DuPont™ Tyvek® brand. Tyvek® can provide the trusted protective barrier people need to worry less so they can focus on accomplishing bigger things – making the greater good possible.

Dual protection offered for chemical and fire hazard threats Richmond, Va.: DuPont Protection Solutions today announced the launch of DuPont™ Tychem® 2000 SFR, a new chemical and secondary flame protection garment. This latest addition to the broad offering of DuPont™ Tyvek® and Tychem® protective apparel solutions is designed for use in refineries, petrochemical plants, laboratories and hazardous maintenance operations where dual protection against chemical and fire hazard threats is paramount to worker safety. “Tychem® 2000 SFR is the latest in a long line of innovative solutions that DuPont has introduced since the early 1970s to address the evolving protective apparel needs of workers around the globe,” said David Domnisch, global marketing manager for Tyvek® Protective Apparel. “By providing dual protection, Tychem® 2000 SFR meets the unique needs of industrial workers and HazMat responders who are exposed to both chemical and fire hazard threats, giving them the trusted protection they need to accomplish bigger things,” explained Domnisch. “This is just the first of several new protective apparel solutions that we will be launching in our Tyvek® and Tychem® product range during 2017 as we celebrate the 50th anniversary of Tyvek® while remaining firmly focused on the future.” Tychem® 2000 SFR provides an effective barrier against a range of inorganic acids and bases, plus industrial cleaning chemicals, as well as particles. In the event of a flash fire, Tychem® 2000 SFR garments will not ignite, and therefore do not contribute to additional burn injury if the wearer uses appropriate flame-resistant (FR)

By providing dual protection, Tychem® 2000 SFR meets the unique needs of industrial workers and HazMat responders who are exposed to both chemical and fire hazard threats, giving them the trusted protection they need to accomplish bigger things. personal protective equipment (PPE). If a fire hazard exists, Tychem® 2000 SFR garments must be worn over an appropriate FR garment, along with other PPE that protects workers’ faces, hands and feet. Special features of the Tychem® 2000 SFR coverall include: a respirator fit hood with DuPont™ ProShield® 6 SFR fabric lining; chin flap with double-sided adhesive tape for secure placement; elastic at the waist and tunneled elastic at the hood, wrist and ankle for improved fit. The garment design also includes a single flap closure over the zipper, with double-sided adhesive tape for additional chemical protection. Protective apparel for industrial workers was among the first commercial applications for Tyvek®, a unique nonwoven material that has provided protection, security and safety in a wide variety of industries and applications since it was introduced in 1967. DuPont Protection Solutions is marking the 50th anniversary of Tyvek® with celebratory events, a series of communications and special activities that will be held throughout 2017 to not only pay tribute to the past but to focus on the future. For more information about NCM-JUNE 2017 83

DuPont Protection Solutions is a global leader in products and solutions that protect what matters – people, structures and the environment – and enables its customers to win through unique capabilities, global scale and iconic brands. DuPont™ Kevlar® helps protect law enforcement officers, military personnel, athletes and astronauts; DuPont™ Nomex® helps protect firefighters, industrial workers and race car drivers, as well as mass transit and wind energy systems; DuPont™ Tyvek® helps protect chemical industrial workers, as well as sterile medical devices and building construction; and DuPont™ Corian® resists the growth of bacteria to help protect hospital patients against infection. More info at personalprotection.dupont.com. DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit http://www.dupont.com.

It is easy not to care about money when you don't have to.

INTERNATIONAL BUSINESS PAGES Garment accessories open new export window for Bangladesh 'The global buyers prefer some accessories from multinational companies on the grounds of quality, which Bangladesh has already' The garment accessories sub-sector is taking on more importance for Bangladesh with the start of direct exports to global brands, and could see a three-fold increase in export revenues in the next eight years. According to data from the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), the accessory sector earned $6.12bn in the last fiscal year, of which $1.12bn came from direct exports. The remaining $5bn were deemed indirect exports. If the sector gets policy support and cooperation from the government, however, the earnings are likely to increase to $12 billion towards the end of 2018 and could hit $18 billion by 2025. “Currently, our direct export is about 20% of deemed export items and is worth $1.12bn,” BGAPMEA president Abdul Kader Khan said. “(But) despite this huge contribution to the RMG sector, we did not enjoy cash incentives against the export of accessories.” To continue the upward trend, BGAPMEA is calling for cash incentives and low interest bank loans to boost the sector and create more jobs. “The sub-sector works closely with the RMG sector as a strong backward linkage industry,” said Abdul. There are about 1,500 factories producing garment accessories and packaging items in Bangladesh, employing over 400,000 people. Products include labels, zippers, tags, tapes, thread, ribbon, buttons, rivets, laces, hooks, transfer film, paper, and ink.

Bangladesh Garment Accessories Industry About 1,560 factories Investment size: Tk30,000 Cr Over 4 lakh people employed Deemed export stood at $6.12bn in FY’16 Direct export made about $1.22bn Deemed export to reach $18bn by 2025 Local demand met 90% Value addition 40% RMG accessory products used to be exported as deemed items, but in recent years, several new global retailers have started sourcing accessory products directly from Bangladesh. Destination countries include the Netherlands, South Africa, Pakistan, India, China, Ethiopia, Indonesia, Italy, Sri Lanka, Turkmenistan, Germany and Austria.

such as Tesco, Kik, Ferari, C&A, H&M, Next, and UniLabel.

According to the association, some big buyers started contacting manufacturers to source accessories from neighbouring countries like Myanmar, India, and Vietnam – sources of their clothing products.

RMG sector leaders believe Bangladesh can take the lead in the export of RMG accessories, especially to the Asian market. China remains the global leader in the sector but has started shifting business due to high labour costs.

Md Zahirul Islam, assistant manager (Commercial and Sourcing) of Montrims Limited, told the Dhaka Tribune that his company manufactures “world-standard” garment accessories for many reputable international brands NCM-JUNE 2017 84

“The global buyers prefer some accessories from multinational companies on the grounds of quality, which Bangladesh has already,” Zahirul said. “Since there is more capacity than needed, accessories can be another big sector for export.”

“Those days are not far away when Bangladesh will turn out to be the global leader in accessories export as it has already established international standard manufacturing factories,” Ex-

INTERNATIONAL BUSINESS PAGES porters Association of Bangladesh (EAB) president Abdus Salam Murshedy told the Dhaka Tribune. “The sub-sector of the clothing industry has made a great contribution to national exports, plus it helps the manufacturers reduce their lead time,” said Salam, who is also a former BGMEA president. (Curtesy: Ibrahim Hossain Ovi, Dhaka Tribune)

BUA Group to set up $500m Textile & Garment Cluster in Katsina State

Aminu Bello Masari Katsina State Governor

Kabiru Rabiu Group Executive Director

ment Cluster will go beyond Katsina and Nigeria borders, while applauding the direction and focus of the project.

could fix its ailing textile sector by developing textile and garment clusters as in other countries with thriving textile industry.

Katsina State Government and BUA Group have entered into agreement to facilitate 500 million dollars Katsina Textile and Garment Cluster that incorporates about 500 Small and Medium Enterprises (SMEs). BUA Group is one of Africa’s largest business groups,

On his part, Alhaji Kabir Rabiu said the conglomerate with enterprise value in excess of five billion dollars has concluded plans to invest in the cluster as part of the efforts to make the comatose textile industry viable again in Nigeria.

The State Governor, Aminu Bello Masari, gave the government’s commitment to cooperate with the billionaire industrialist and founder of BUA Group, Abdulsamad Rabiu, on the project when he received BUA’s Executive Director, Kabiru Rabiu, in Muhammadu Buhari House, Katsina.

Rabiu disclosed that the infrastructural development of the project expected to generate over 25,000 jobs would commence soon after its ground breaking ceremony before the end of this year.

Masari, who approved a committee led by his deputy, Mannir Yakubu, to facilitate the initiative and determine the suitable location of 500 hectares of land for project, said the government has not only waived all fees and taxes involving the state but would bring its influence to bear on those involving federal government in a bid to boost diversification of the nation’s economy. He added: “Your coming is really in tandem with our plan in the North West to have an economic body that will propel this kind of agenda. I think Katsina was identified to produce cotton and rice as well as textile and garments.” The governor further said the multiplier effect of the Katsina Textile and Gar-

“Really, we have the resources to commence site infrastructural development as well as the anchor textile that we need to put in place within the cluster. We will divide it into two phases of 250 hectares each to get the development done as soon as possible. “A lot of companies have already indicated interest in it. If you look at the garment industry, it is a huge sector. Nigeria imports 23 million pairs of jeans every year. If you see the cost of making it, it is nothing to write home about and we have the kind of cotton in this country to make jeans,” he stated. The Executive Director of BUA, who gave snapshot of the group, revealed that Nigeria’s textile imports from China and India were valued at about four billion dollars, adding that Nigeria NCM-JUNE 2017 85

He urged the federal government to initiate incentives for textile clusters due to their huge potentials in wealth and job generation and other socioeconomic development. “If you look at the percentage as in GDP, in some economies, textiles contribute about 90 per cent but the Nigerian textiles contribute may be less than two per cent,” said Rabiu. During the 14 years of the calamity that rocked the Nigerian textile industry, major garment factories ran out of business and almost 3 million jobs lost in the process. Even with the 100 billion naira federal government intervention fund, the North’s economy which included the profit from the textile sector still feels the effects. Before the collapse of the industry, cotton production was the main focus of textile manufacturers, as cotton is the life of the textile industry. In the past, the federal government supported the industry through the ban on imported textile products but the boom in the oil sector caused a neglect for other important resources within Nigeria’s boundaries, the government relaxed on the law and unbanned importation, which favoured the big players that had easy access to funds, and started importing from China, Indonesia and other Asian countries.

INTERNATIONAL BUSINESS PAGES Power generation has been identified as a major resource to revive the textile industry. The textile industry is a massive labor intensive organization that will address the issue of unemployment, youth restiveness, drugs, and crime. If new textile industries are built more jobs will be created as the textile mill embodies three complete factories: the spinning, weaving and finishing departments. For instance, Funtua Textile is the only integrated industry in Katsina state as it starts from the ginnery to finish products, the company’s initial staff strength of 1500 which grew up to 2500 in the past now as a current staff strength of 750. In spite of all the problems of power and multiple taxations, the company has not closed down for a day. At first the company produced 12,000 metric tons of grey baft but at the moment, the production capacity is less than 7,000 metric tons because of the decrease in the market for products and lack of new machines for production. Even with the support from Bank of Industry, the fear of not being able to refund is a constant worry as the loan gotten from the bank might not be paid because of low profit. They need all the assistance they can get.

Katsina State Created on September 23, 1987, Katsina state covers a total area of 24,192 km2 (9,341 sq mi) and has a total population of 5,801,584 as at the 2006 census. With an average population density of 160/km2 (420/sq mi) and a total GDP (2010) of $6,022 Mn, at $1,017 Per Capita. Major Towns: Daura, Funtua, Malumfashi, Bakori and Kanjia.

Workshop on waste water reuse held in Dhaka, Bangladesh A workshop on “Waste Water Reuse” was jointly organized by IFC PaCT,

Workshops and training sessions are held to enlighten cotton farmers and cooperative societies in Katsina State on planting as well as pod harvest procedures. These are aimed aimed at encouraging best cotton farming practices and management for increased production.

BGMEA and TTBC at a hotel in Dhaka on 31 May. BGMEA President Md. Siddiqur Rahman attended the workshop as Chief Guest where IFC’s Country Manager to Bangladesh Wendy J Werner and IFC’s Global Water Lead Mohan Seneviratne were also present. Experts on environment and water technology discussed on feasibility of waste water reuse in the RMG and Textile subsectors. Technology providers from Japan, India, and Italy presented their latest technology for effluent treatment and waste water reuse. In his address the BGMEA President said, “To pursue a higher growth we need to think differently. We need alternate ways to optimize water resource utilization”. Extending his thanks to IFC for taking the initiative to promote waste water reuse in the RMG industry, he said, “While we are NCM-JUNE 2017 86

trying our best to reduce the water usage in the manufacturing process, the responsibility of all the parties involved in the supply chain is also important.” Water sustainability – in terms of water consumed, and of wastewater effluent released - is a key challenge for the long-term viability and growth of the textile sector in Bangladesh, as well as for other economic and social activities that depend on a clean and reliable water supply. The Bangladesh Water PaCT- the Par tnership for Cleaner Textile (PaCT, the Program) is to reduce environmental and related social impacts that result from prevailing practices in textile wet processing, particularly excessive groundwater extraction and surface water pollution, but including energy and chemical use. Program will improve the global and local “license to operate” of the textile sector in Bangladesh and strengthen its long-term competitiveness.

NEWS BRIEFS GI Tag is beneficial not only to weavers and artisans, but consumers too: Textiles Minister GI help-desk to be set up in every office of handicrafts and handlooms: Textiles Minister Textiles Minister launches Helpline for Handicraft Artisans Textiles Minister inaugurates National Workshop on Promotion of Unique Textiles and Handicrafts The Union Textiles Minister Smt. Smriti Zubin Irani has said that the Geographical Indication tag helps not only weavers and artisans, but also the consumers. The Minister said that the GI tag is an assurance of getting the right product at the right price, directly from the weaver/artisan. Smt. Irani highlighted the importance of building consumer awareness on this matter, while addressing the inaugural session of the two-day “National Workshop on Promotion of Unique Textiles and Handicrafts for GI and Post-GI Initiatives”, being held under the aegis of the Ministry of Textiles, in Constitution Club of India, New Delhi. Noting that many of the challenges in GI are faced after obtaining GI registration, the Minister called for the need to build a wider appreciation of the value of GI among all stakeholders, in order for better implementation of the legal provisions. Smt. Irani announced that a GI helpdesk would soon be set up in every Service Centre run by the Government for weavers and artisans. She said this would help bridge the information gap between Centre and the field, and would assist weavers and artisans in availing the benefits of Geographical Indications. The Minister said that this is being done to maximize governance, in line with the Government’s

The Union Textiles Minister Smt. Smriti Zubin Irani addressing the inaugural session of the two-day “National Workshop on Promotion of Unique Textiles and Handicrafts for GI and Post-GI Initiatives” in New Delhi

Smt. Irani handed over GI certificates o three registered proprietors developmental philosophy of Sabka Saath Sabka Vikaas. The Minister also launched a helpline for handicraft artisans today; the helpline number is 1800-2084-800. Recalling that the problems of 6,707 weavers have been resolved so far through the Bunkar Mitra helpline for handloom weavers, the Minister said that the Handloom Census has started, and that weavers will be given identity cards at the next National NCM-JUNE 2017 87

Handloom Day. The Minister also observed that the Government has decided to give 75% fee subsidy to the children of weavers and artisans of BPL families, for pursuing school education under NIOS and university education from IGNOU. Smt. Irani assured the audience that the points raised during the workshop will be taken up by the Textiles Committee for the consideration of the Government. She also said that the

NEWS BRIEFS

The Union Textiles Minister Smt. Smriti Zubin Irani releasing a Compendium of Indian Handicrafts & Handlooms covered under Geographical Indications (GI), compiled by NCDPD, on behalf of Ministry of Textiles. Ministry of Textiles would take up issues requiring changes to the legal framework with the Ministry of Law & Justice. The Minister also released a Compendium of Indian Handicrafts & Handlooms covered under Geographical Indications (GI), which has been compiled by NCDPD, on behalf of Ministry of Textiles. The compendium contains list and details of all 149 Indian Handicrafts & Handlooms covered under GI, till April 2017. The compendium also consists of the list of awardees of GI-tagged handicraft and handloom products. This is a unique & first-of-its-kind compilation. The Minister also released two reports of the Textiles Committee, on traditional hand-wovens of i) Andhra Pradesh and Telangana, and ii) Karnataka. She also handed over GI certificates to three registered proprietors, who are producers of Jamnagari Bandhani, Jamnagar, Gujarat; Kuthampully Dhoties and Set Mundu, Kerala; Karvath Kati Sarees & Fabrics, Maharashtra.

Minister of State, Textiles, Shri Ajay Tamta speaking on the occasion Tamta said that the more widespread adoption of Geographical Indications would be highly beneficial to the handicraft and handloom sectors, especially in protecting and preserving the rich cultural heritage associated with them. Shri Tamta said that the workshop is a step in this direction, which would contribute to the social and economic empowerment of handloom weavers and handicraft artisans. The Minister said that the artisan helpline launched today would enable empowerment of the last person on the street, through provision of required information.

Minister of State, Textiles, Shri Ajay

Besides Secretary, Textiles, Smt. Rashmi Verma; Chairperson, Craft Revival NCM-JUNE 2017 88

NEWS BRIEFS Trust, Ms. Ritu Sethi; Ms. Delphine Marie-Vivien, Centre for International Cooperation in Agronomics Research and Development (CIRAD); and other dignitaries, hundreds of handicraft artisans from various states and regions across the country were present for the workshop.

Indian Textile Delegation Visits Kazakhstan A textile delegation led by Dr. Subrata Gupta, Joint Secretary, Ministry of Textiles, visited Shymkent City, Kazakhstan from April 20 to 23, 2017 to participate in the 4th meeting of the Joint Working Group on Textiles between India and Kazakhstan. The other members of the delegation included Mr. M. Chockalingam, Chairman and Managing Director, Cotton Corporation of India (CCI), Shri Anil Kumar, Executive Director, Synthetic Rayon Textiles Export Promotion Council (SRTEPC) & Shri R. Gururaj, First Secretary, Embassy of India, Astana. During the Visit, the members of the Delegation had Meetings with Mr. Tuimbayev Zhaneit, Governor, South Kazakhstan Region who warmly welcomed the delegation and expressed happiness at the interest shown by the Indian side to explore possibilities for cooperation in the textile sector in Kazakhstan. The Governor highlighted that the economic relations between India and Kazakhstan are good, and mentioned that there is scope to deepen and further expand bilateral economic ties. He provided a broad overview of the potential of Shymkent as an attractive investment destination in the textile sector and briefly touched upon the incentives being offered at the Ontustik SEZ. He informed that South Kazakhstan represents a large market for textile products and welcomed Indian investments and production of textiles in Kazakhstan. He pointed out that India has proven expertise in the entire value chain of textile production, es-

Low GST Rates For All Natural Fibres, A Step In The Right Direction: Citi New Delhi: CITI Chairman, Shri J. Thulasidharan welcomed the announcement made by the Hon’ble Union Finance Minister to keep the GST rates for all natural fibres including cotton, cotton yarn, fabrics and readymade garments valued below Rs.1000/- at 5 per cent. Shri Thulasidharan complimented the government for keeping the rates at low level so that textile sector, especially cotton based products can grow faster. He also pointed that the “new rates will help us to prepare ourselves for the newer regime as rates for cotton and natural fibres are in sync with our expectations”.

Shri J. Thulasidharan CITI Chairman

Chairman CITI has expressed his gratitude to Smt. Smriti Zubin Irani Union Textile Minister and said, “on behalf of CITI committee members and textile industry, I extend my gratitude and appreciation to textile Minister for keeping her promises and accommodating industry demand of 5% GST especially for cotton and natural fibre based textile items”. Taking a cautionary note, Chairman, CITI observed that 18% GST rate levied on manmade fibre and synthetic yarn would have inverted duty structure problem as the fabric would attract only 5% GST rate. He also pointed out that the high rates announced for MMF fabric and yarn, dying and printing units, embroidery items at 18 per cent can lead to an increase in input costs and can adversely affect the entire textile value chain. Indian textile and apparel sector which is the largest employment providing sector of the Indian manufacturing sector has been facing huge competitive challenges from neighbouring textile producing countries like Bangladesh, Vietnam and China. Keeping the tax rates high will not only escalate textile inflation but will lead to cheap imports from these countries. This will affect Indian manufacturing sector unviable to operate. The textile sector is suffering from various disadvantages like high energy costs and infrastructure bottlenecks. Keeping the rates of key inputs at a higher level will further affect the competitiveness of the sector, said CITI Chairman. Shri J. Thulasidharan urged the government to reconsider the rates of MMF products and bring it at 12 per cent. India is already suffering a huge competitive disadvantage in the global textile market as the MMF based textile products are attracting higher rates of import duty. Keeping the GST rates at this rate will undoubtedly cripple hundreds of small and medium synthetic textile manufacturers, said CITI Chairman. CITI Chairman has also appealed to the Government to exempt the textile jobs from service tax as it would benefit the predominantly decentralized and MSME nature of the industry, especially the powerloom, knitting, processing and garment sectors. NCM-JUNE 2017 89

NEWS BRIEFS pecially in cotton industry and expressed hope that the deliberations of the Joint Working Group would result in some actionable points. Dr. Subrata Gupta the leader of the Indian Delegation thanked the Governor for the warm hospitality extended by his administration to the Indian delegation. He informed that during the visit of Hon’ble Prime Minister Shri Narendra Modi to Kazakhstan in July 2015, both leaders had identified textiles as one of the promising areas in the Joint Statement ‘Tej Kadam’ issued during the visit and had agreed to extend full support to joint projects in realising potential in textiles Mr. B. S. Dzhamalov, Deputy Akim of Kazakhstan (centre) and to his right Dr. Subrata Gupta, Joint Secretary Exports along with the other members of the Delegation after the signing of the protocol on a mutually beneficial basis. . The visit of the Prime Minister to Kazakhstan paved the way to expand the strategic partnership for the benefit of people of both countries. The visit also coincided with the Astana Day, the 550th Anniversary of the Kazakh Khanate and the 20th Anniversary of the Constitution of the Republic of Kazakhstan. Dr. Gupta informed that India is one of the largest producers and exporters of textiles items in the world. He further stated that India is one of the top producers of raw cotton, manmade fibres, jute, synthetic rayons and silk. Dr. Gupta also informed about the "Textiles India 2017” being organized from 30 June to 2 July 2017 in Gandhinagar, India and stated that the event is expected to attract more than 1000 exhibitors and 2500 international buyers and producers. He requested the Governor to consider sending a large delegation from Kazakhstan to participate in Textiles India 2017 and offered to facilitate visits and meetings for the Kazakhstan delegation during their participation in the event.

Mr. B. S. Dzhamalov, Deputy Akim of Kazakhstan (centre) and to his right Dr. Subrata Gupta, Joint Secretary Exports along with the other members of the Delegation after the signing of the protocol. Mr. Gupta handed over a brochure on Textiles India 2017 to the Governor and to the other members of the Kazakhstan delegation at the meeting. The Governor agreed to consider Kazakhstan’s participation in the event. The Governor said that all assistance would be extended by his administration during the visit of the JWG delegation to the industrial zones/SEZ and other units. This was followed by a Meeting of the Joint Working Group at the Ontustik Invest JSC Office which was chaired by Mr. Baurzhan Saldaruli Dzhamalov, Deputy Governor of South Kazakhstan region. During the Meeting, Mr. Yermek Sakishev, Chairman of Board, Investment Fund of Kazakhstan, made a detailed presentation about one of their local companies “Utex Kz JSC”. He also invited interested Indian companies to consider this stressed asset for revival through purchase of stake in equity capital or a JV arrangement or outright takeover or any other form of partnership. He invited the Indian side to visit the asset later in the day. Both sides discussed various clauses of the draft protocol and agreed to finalize the same the next day. During the discussion, Dr. Subrata Gupta suggested to NCM-JUNE 2017 90

include a clause on cooperation between CCI and a counterpart organization in Kazakhstan which was well received by the Kazakh side. However, regarding the suggestion of the Indian side for an MoU with Textiles Committee of India and a counterpart organization in Kazakhstan on issues of certification and testing, the Kazakh side had reservations. The Indian Delegation visited Atamaken “Chamber of International Commerce”, Shymkent where they were welcomed by Mr. A. Abubakirov, Director who expressed satisfaction at the interest shown by the visiting Indian delegation in joint development of textile sector of Kazakhstan. He gave a brief overview of the activities of the Chamber and requested Indian side to brief them about possible areas of cooperation between the two countries. Dr. Gupta thanked the Chamber for organizing the meeting and inviting local companies. He briefed them about the Textiles India 2017 and requested the Chamber to participate in the event. Brochures of the event were distributed to the participants. Mr. V. Anil Kumar, ED, SRTEPC and Mr. Chockalingam, CMD, CCI made detailed presentations on the cotton sector and textile industry of India respectively. These presentations were followed by inter-

NEWS BRIEFS actions with the officials of the Chambers and participating local companies and explained in detail about various schemes and incentives provided to Indian producers and exporters which were noted with interest by the Chamber. Some of the companies pointed out that poor transport connectivity between India and Kazakhstan represents a challenge to them for importing textile goods from India. The Indian delegation visited Vtex Kz JSC and interacted with the officials of the Investment Fund of Kazakhstan JSC which owned the assets.

park such as construction materials, consumables, glass bottles, automobile parts etc.

The delegation visited three manufacturing units at the Ontulstik Special Economic Zone the first being the Oxy Textile Spinning Mill (Kazakh) which is yet to start commercial operations. The machinery is principally from Reiter, a Swiss leader in textile machinery.

•

Exchange information on the state of the textile industry of the two countries.

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Possibility of establishing joint ventures in the territory of the SEZ “Ontustyk”.

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Facilitate interaction of the Kazakh stakeholders with industry leaders from India either at Textiles India 2017 or on agreed dates to explore the role of downstream products in the value chain in the textile industry in Kazakhstan.

CMD CCI observed that the cotton being used in the spinning mill was locally produced, of medium staple and producing counts of 16s and 32s. They plan to export the produce to Turkey and Russia. Bal Tekstil (Kazakh-Turkish) produces primarily polypropylene carpets for export to China. They are using both cotton and jute backing cloths. The plant is an integrated one with a facility for producing PP yarn and finally KORE (Kazakh) manufactures socks and stockings. The machinery is from South Korea. The produce is exported to South Korea.The unit procures polyester cotton yarn from India. The delegation also visited the site of a nascent spinning mill which is being set up by the owners of stressed asset. In this regard, they have imported appropriate machinery and kept in storage onsite as they do not have interested investors to take forward this project at the moment. The delegation also visited an industrial park. They were shown a variety of products (other than textiles) being manufactured by units located in the

The visit of the Delegation concluded with the JWG reconvening at the Office of the Deputy Akim (Deputy Governor) and finalizing the protocol. The protocol in English and Russian were signed by Mr. B. S. Dzhamalov, Deputy Akim from the Kazakh side and Dr. Subrata Gupta from the Indian side and exchanged.

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Explore the possibility of joint research in different areas of textile technology and product development for textile industry.

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Kazakhstan has agreed to send a Delegation to participate in Textiles India 2017 being held in India during 30th June-2nd July 2017 and explore opportunities for joint ventures in textile sector.

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An MoU to be signed between the Cotton Corporation of India and the counterpart organization from Kazakhstan side on the establishment of regular consultations for mutual development of cotton sector of the two countries during Textiles India 2017.

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Kazakhstan side agreed to consider India’s suggestion for reducing the tariff applied on imports of Indian textile products to maintain reciprocity.

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The next Meeting of the KazakhIndia working group on co-operation in the development of the textile industry will be held in Delhi, India in 2018.

The highlights of the signed protocol is as follows :

Road Shows Held in Malaysia, Bangladesh, Vietnam and Turkey For Mobilizing Buyers For Textiles India 2017 (at Gandhinagar) The first ever mega trade event for the entire textiles value chain – Textiles India 2017 is being organized at Mahatma Mandir and Exhibition Grounds, Gandhinagar, Gujarat during 30th June – 2nd July 2017. The first ever mega trade event for the entire textiles value chain – Textiles India 2017 is being organized at Mahatma Mandir and Exhibition Grounds, Gandhinagar, Gujarat during 30th June – 2nd July 2017. The event being organized by the Ministry of Textiles will establish India as a global sourcing and investment destination. The event will have Country Sessions, State Sessions, Round Table Sectoral Seminars, B2B Meetings with around 2500 international buyers, sector specific theme pavilions, Fashion Shows on the inaugural day and Day 2 and thematic Shows. Buyers from over 25 countries are being selected for inviting to the Show. The Council is making all out efforts to mobilize Exhibitors & Buyers for the event. As part of the programme, Road Shows, in the form of Presentation Meeting have been lined in various leading market of textiles including Turkey, Vietnam, Sri Lanka, Bangladesh, Malaysia, etc. to publicize and promote Textiles India 2017. In this regard, the Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) organised a Road Show in Kuala Lumpur, Malaysia on 25th & 26th April 2017. Presentation on Textiles India 2017 were made and NCM-JUNE 2017 91

NEWS BRIEFS brochures on Textiles India 2017 were distributed to the officials of the leading trade bodies [Kuala Lumpur & Selangor Indian Chamber of Commerce & Industry (KLSICCI); Kuala Lumpur Malay Chamber of Commerce (KLMCC); Malaysian Textile Manufacturers Association (MTMA); Malaysian Indian Textiles & General Store Association (MITA)]. Road Shows were also organized in Bangladesh on 2nd May 2017. In Bangladesh the Chairman and Vice Chairman made Presentations of the Textiles India 2017 to the officials of Bangladesh Garment Manufactures and Exporters Association (BGMEA) and Bangladesh Knitting Manufacturers and Exporters Association (BKMEA). During the Meetings at both Malaysia and Bangladesh the Chairman and Vice Chairman besides briefing the visiting buyers, Heads of the industry about the highlights of Textiles India 2017 also interacted with them and answered their queries. In Vietnam too the Road Shows which were held in Ho Chi Minh City on 10th May 2017 and in Hanoi on 11th May 2017 were successful. The Vice Chairman of the Council met with the officials of Vietnam Textile and Apparel Association (VITAS) and Hanoi Promotion Agency (HPA) and briefed them about the Textiles India 2017.

Shri Sri Narain Aggarwal, Chairman and Shri Ronak Rughani, Vice Chairman of the SRTEPC interacting with the Bangladesh Association during the Road Shows held in Bangladesh

Shri Sri Narain Aggarwal, Chairman and Shri Ronak Rughani, Vice Chairman of the SRTEPC with the officials of Malaysian Textile Manufacturers Association (MTMA) during the road show in Malaysia held to publicize and promote Textiles India 2017 among the Malaysian textile buyers.

Road Shows were held in Turkey from 21st26th April 2017 to publicise the event. In Turkey, Shri Anil Rajvanshi, the immediate past Chairman and Convenor of the Sub-Committee for Export Promotion visited the textile hubs in Izmir, Denezili, Adan, Ankara and Bursa to brief the Turkish buyers about Textiles India 2017. Since a sizeable number of textile firms from Malaysia, Bangladesh, Vietnam and Turkey expressed their interest about the Mega textiles event in Gujarat, it is hoped that a substantial number of buyers will visit the Show to meet suppliers at the Fair and discuss business with them. Till date number of buyers from Malaysia : 9, Bangladesh : 20, Vietnam : 1 and Turkey : 9. NCM-JUNE 2017 92

NEWS BRIEFS Cotton Market Fundamentals & Price Outlook : Cotton Incorporated Monthly Economic Letter June 2017

Recent Price Movement

Both NY futures and the A Index were volatile over the past month, quickly rising and falling in the middle of May. Current values are at the lower end of trading ranges defined throughout the spring. Other benchmark prices were mostly stable in May and early June. -

After rocketing to levels over 87 cents/lb in intraday trading in midMay, values for the nearby July NY futures contract quickly returned to their longer-term trading range between 76 and 79 cents/lb. Recently, values have been testing the lower end of that range, but have yet to decisively break through support near 76 cents/lb. Prices for the NY December futures contract, which overtook July as the contract with the most open interest in mid-May, were comparatively stable over the past month. Despite the sharp rise in prices for July futures, values for the December contract were not able to hold above the 75 cent mark. Recent levels have been consistently hovering around 72 to 73 cents/lb.

With the spurt in July futures, the A Index posted its highest value of the crop year May 15th (94.9 cents/lb). Since then, the A Index has fallen back to levels near 86 cents/lb, which is close to the average it has maintained over the past several months.

The China Cotton (CC) Index moved slightly higher over the past month. In international terms, prices rose from 105 to 107 cents/ lb. In domestic terms, prices rose from 16,000 to 16,100 RMB/ton.

Cash prices for the Indian Shankar-6 variety were mostly stable in international terms in May and early June, holding to levels near 85 cents/lb. In domestic terms, values were also steady, holding to levels near 43,000 INR/ candy. Pakistani prices were stable over the past month (near 79 cents/lb in international terms and near 6,800 PKR/maund in domestic terms).

Supply - Demand - Trade This monthâ&#x20AC;&#x2122;s USDA report featured increases to forecasts for both global production and mill-use in the upcoming 2017/18 crop year. The projection for the world harvest was lifted 1.5 million bales, from 113.2 to 114.7 million. The projection for world mill-use was lifted 760,000 bales, from 115.8 to 116.5 million. The rise in the global production figure was primarily a result of heightened expectations for Pakistan (+800,000 bales, from 8.5 to 9.3 million), China (+500,000 bales, from 23.5 to 24.0 million), and Mexico (+150,000, from 1.1 to 1.3 million). There were no downward revisions. For mill-use, the increase was mostly a result of increases for China (+500,000 bales, from 37.5 to 38.0 million), India (+200,000, from 24.0 to 24.2 million), and Pakistan (+200,000 bales, from 10.4 to 10.6 million). Predictions for global cotton trade were revised lower (-785,000 bales, from 37.6 to 36.8 million). The reduction was driven by higher production forecasts for importing countries, including Pakistan (import forecast down 600,000 bales, from 2.6 to 2.0 million) and Mexico (import forecast down 125,000 bales, from 975,000 to 850,000). Export projections were lowered for the U.S. (-500,000 bales, from 14.0 to 13.5 million), India (-300,000 bales, from 4.5 to 4.2 million), and Brazil (-100,000 bales, from 3.2 to 3.1 NCM-JUNE 2017 93

million). There was an increase to the export number for Pakistan (+100,000, from 350,000 to 450,000). Even with a reduction in the estimate for 2017/18 beginning stocks, the net result of this monthâ&#x20AC;&#x2122;s updates for predicted 2017/18 ending stocks was an increase of 564,000 bales (from 87.1 to 87.7 million). If realized, this implies a drawdown in world stocks of 1.6 million bales next crop year (from 89.3 at the end of 2016/17 to 87.7 million at the end of 2017/18). This global reduction is expected to be focused on China, where stocks are expected to drop 9.1 million bales, from 48.4 million bales at the end of the current 2016/17 crop year to 39.3 million bales at the end of 2017/18. If realized, Chinese stocks would be 40% lower at the end of the upcoming crop year than they were at their peak in 2014/15 (66.9 million bales). Nonetheless, the current forecast indicates that Chinese stocks will remain at a level nearly double the volumes near 20 million bales that were common in the mid-2000s, a time period when Chinese mills were consuming 50 million bales (projection of 38.0 million for 2017/18). Stocks for the collection of countries outside of China are projected to rise 20% in 2017/18 (from 40.9 to 48.4 million) and to reach a new record. Price Outlook The forecast global production deficit dropped to only 1.8 million bales in this monthâ&#x20AC;&#x2122;s updated set of estimates. This is within a margin of error that could be closed by good weather in a couple major producing countries. Whether or not the world ends up with a slight surplus or a slight deficit of production relative to mill-use will not significantly alter key assumptions involving the distribution of ending stocks inside and outside of China. For the past several years, China has been successful in drawing down its reserves. In 2017/18, another large drawdown in government-controlled

NEWS BRIEFS stocks should occur, pulling Chinese ending stocks from the equivalent of 130% of annual mill-use in 2016/17 to 105% in 2017/18. While this is an important reduction, China still has a tremendous amount of cotton in storage. For this reason, the Chinese government could be expected to maintain import quotas at low levels for another crop year or two, until the stocks-touse ratio drops to levels closer to historical averages. Throughout most of the 2000s, Chinaâ&#x20AC;&#x2122;s stocksto-use ratio was near 50%. However, China has a production deficit that can be expected to hold at levels in excess of ten million bales. As a result, China will eventually need to lift import quotas. The market just does not know when the Chinese government might decide to do so. In addition, it is unknown how the Chinese might eventually decide to lift quotas. It is possible they could jump directly from current volumes near four million bales to those over ten million bales that were common in the past. It is also possible that the Chinese government could feather in the increases, lifting restrictions incrementally over a period of several years. The consequences for global cotton prices would be very different. This crop year, the world outside of China is expected to produce a large surplus that will serve as a buffer against the possibility of a sharp increase in Chinese import quota. Whether or not a buffer stock will be maintained outside of China will be a factor to watch for price direction over the longer-term. Chinese import quota is allocated on a calendar year basis. Last crop year, the market got news regarding Chinese import quota levels late in the summer. Whenever an announcement is made for 2018, it can be expected to influence price direction.

Note: Differences in price movement in local and international terms (cents/ lb) due to changes in exchange rates. cents/lb RMB/ton (Source: USDA)

Impact of GST on Textile Industry Background: The textiles and apparel industry in India accounts for about 10% of manufacture or production and 2% of India's Gross Domestic Product (GDP) and constitutes about 13% of country's export earnings. The industry is currently estimated at around $108 billion and is expected to reach $223 billion by 2021. Textile industry has been enjoying various tax exemptions, benefits and concessions under indirect taxes. Introduction of GST could have a considerable impact on textile industry. In this article, an effort has been made to examine the impact under GST regime. The lack of fetters on this industry had enabled it to grow even though much of the manufacture or production takes place in the unorganised segment. The exports of $40 Billion is encouraging. As per Press Reports the Commerce Ministry has asked for concessions/sops in GST regime also for exporters. Current Status in Indirect Taxes

VAT/Sales tax Most of the States in India have exempted textiles and fabrics from the levy of VAT / Sales tax. Garments including textiles are being subject to lower rate of VAT / Sales tax in many States. For example, in Karnataka State, readymade garments and other articles suffer lower rate of 5.5% tax. Textiles are exempted from VAT. For small players, the option of paying taxes at concessional rates is also provided under composition scheme in many States. Entry tax In many States, entry tax is levied on specified goods when goods enter local area. Even textiles such as cotton, woollen or silk or artificial silks are liable to entry tax in States like Karnataka at the rate of 1% which adds to the purchase cost.

Central Excise duty Central excise duty was first introduced on woven garments in year 2001 which was subsequently extended to the entire textile industry by 2003. The excise duty exemption option was also provided vide notification no.30/2004 with a condition of non-availment of Cenvat credit. There was also an option to pay concessional rate of excise duty with Cenvat credit benefit. However, almost all assesses opted for exemption. In 2011, mandatory excise duty was reintroduced on branded garments with Cenvat credit benefit and abatement of 55% for duty payment. This mandatory levy was again removed in 2013 and optional scheme of paying duty with Cenvat credit benefit was continued. In 2016, mandatory excise duty has been introduced again on branded readymade garments made up of textiles falling under central excise tariff headings 61, 62 and 63. The levy is attracted only when retail sale rice (RSP) is Rs.1000/- or more and levy is only on 60% value after standard abatement of 40%. For payment of duty, a concessional rate of 2% without Cenvat credit or 12.5% with Cenvat credit option is applicable. Non-branded goods continue with "Nil" levy without Cenvat credit benefit. Otherwise, the option of paying 6% with Cenvat credit in case of garments / articles of cotton, not containing any other textile material is available. For garments of other compositions, "Nil" rate without Cenvat credit or 12.5% with Cenvat credit is available. NCM-JUNE 2017 94

NEWS BRIEFS The non cotton inputs for the garments such as thread, yarn, buttons etc have been subjected to the normal levy under Central Excise for the past decade or so. Contract Manufacturing/Job Work In garment industry many times, brand name owners outsource the goods manufactured completely or on job work basis. There are special provisions that the central excise duty levy which in normal course should be attracted in the hands of the job worker gets shifted to the brand name owner. Such brand name owner needs to register and comply with the provisions of excise law. Brand name owner alternatively could authorize his jobworker to obtain registration and pay duty on goods. GST Rate and Its Impact Impact of GST on textile industry could be determined only after final rates are declared for the goods. Presently, most of the garment manufacturers opt for either complete excise duty exemption or payment at 2% duty without Cenvat credit benefit as most of the raw materials do not suffer excise duty, especially in the case of cotton based sector. On branded garments, the effective excise duty rate would be 1.2% (if the manufacturer opts for 2% payment with abatement of 40%) or 7.5% (if the manufacturer opts for 12.5% payment with abatement of 40%). Hardly anybody would be expected to opt for the latter due to lack of credit availability. The VAT/ sales tax would also be paid at lower rates or at concessional rates under composition schemes as applicable in different states. Exports have continued to be free from taxes all these years. In GST regime, most of the indirect taxes such as central excise duty, service tax, VAT/Sales tax and entry tax would get subsumed. For textile and its products, GST rate of 12% is expected. If it is so, then it could have a negative impact as the industry is

price sensitive. Paying 12% GST would be costlier for assessees who presently pay 1.2 % excise duty + 5% to 6% of VAT which amounts to 6 to 7.2% tax. Even input tax credit on inputs and input services may not be sufficient to fill the gap as natural raw materials such as cotton may continue to get exemption in GST regime. It may be noted that other materials such as chemicals, dyes, accessories and packing materials which constitutes around 8% to 12% of total material cost could be liable for standard GST of 18% which would be eligible as input tax credit when output GST is paid. However, in case of manmade fibre segment, most assessees have been paying excise duty at regular rates along with VAT. Inputs such as polyster fibre, nylon and other petrochemicals suffer excise duty, which can be claimed as Cenvat credit. This segment may get a level playing field as GST rate of 12% could have positive impact on them who are already paying more than 12% tax. For this sector, seamless credit could also result in lower price of goods which could boost demand for non-cotton garments benefitting consumers by way of price reduction. It is expected that there can be a gradual shift in the domestic textile industry towards manmade fibre under GST regime due to tax advantage. NCM-JUNE 2017 95

Option Of Tax Payment - Job Work In GST Even in GST regime, the principal would get the option of sending inputs or capital goods for job work (Section 55 of Model GST law). Raw materials sent should be received back within 1 year and capital goods should be received back within 3 years. If the goods are not received within this time limit, then supply of goods would be treated as supply for levy of GST. The processed goods could also be sent directly to customers of principal, provided job workers are registered or the details of job workers place are added as additional place of business in principal's registration certificate. The principal manufacturers who have authorised the job workers to pay excise duty may be required to pay GST directly instead of authorising the job workers. However, when the goods are procured and supplied by job workers after processing, then the same would be treated as supply for levy of GST by job workers. Wherever the principal manufacturers are sending goods to job work units who are not required to be registered under GST regime, such units are to be added as additional place of business in principal's registration certificate. It may be noted that the processing of goods sent by the principal would

NEWS BRIEFS be treated as service for GST purpose. Job workers could choose GST exemption if the value of such services does not exceed Rs.20 lakh per annum. However, such option may not be feasible as it would break the input tax credit chain. GST payment option could be a better choice as GST would provide seamless credit on goods and services. This would be beneficial even for the principal manufacturers. The job workers should be made aware of such an option and its impact. There are a few transitional provisions which are applicable for incomplete transactions and also requirement of declarations to ensure credit on the closing stock. Impact On Export Benefits Textile exports from India for FY 201516 stood at around US dollar 40 billion and Indian textile industry gets good amount of duty drawback on export of garments. Duty drawback rate varies from 7 % to 10% on FOB value of exports with cap limit varying from Rs.15 to Rs.620 when Cenvat credit benefits are not claimed. In GST regime, duty drawback may lose relevance as there would be seamless credit at each stage of value addition and better transparency. Even if duty drawback is continued to offset the impact of basic customs duty component, which is non-creditable tax, the drawback rate could be very less. This could impact largely, those assessees, who are dependent on duty drawbacks for achieving good margin/profit. Exports would be zero rated supplies under GST with benefit of credits on goods and services procured. The accumulated credits could be claimed as refund within 2 years from specified date. Due to better transparency, refunds could be faster in GST regime. Based on model GST law as updated in November 2016, 90% of the refund would be provisionally processed after filing of refund application subject

Impact of GST on Textile Industry Areas of Concern: Areas

Concerns

Matching of credit

Credit would be available subject to matching/ verification with returns filed and payments made by the supplier of goods or services.

Dependence on job workers

The industry largely depends on job workers, who are not so organised to comply with a technology oriented law like GST

Reduced exemption limits

Under CE law the exemption limits were Rs.1.5 crores, which is reduced to Rs.20 lakhs in GST regime. Hence the number of asssessees would increase.

Increased compliance burden

Multiple registrations and returns would prove to be a heavy burden for the industry as it would consume time, effort and resources.

Technology driven Law

GST is a technology driven law, which would pose difficulties to small players, who may find it difficult to adapt.

Composition Scheme available for job availworkers

Since the job work activity is deemed to be a not service, composition scheme would not be able and tedious procedural aspects need to be complied.

to certain conditions. If this is executed by the Government, then it could solve the cash flow problem for the industry. Credit On Capital Goods The assesses who have plans for large investments in capital goods could plan for the same in GST regime which would enable them to take credit of taxes paid on capital goods procurement for utilisation against payment of output GST. Assesses who are engaged in export of goods could opt for Export Promotion Capital Goods (EPCG) scheme to procure the goods without payment of any duties. It is expected that the EPCG scheme under which export obligation of 6 times of duty saved amount has to be fulfilled within 6 years would continue in GST regime as this is provided under the Foreign Trade Policy NCM-JUNE 2017 96

issued by the Ministry of Commerce. Procurement Planning Exemptions would be phased out in GST regime and there may not be any product specific or area specific advantage for textile industry which could create competitive environment. There is a need to plan for the procurement of inputs at better prices considering various factors such as quality, location of supplier, type of taxes charge etc. Taxes paid on interState purchases would be eligible for credit in GST regime. Presently, CST paid on inter-State purchases is not being allowed as credit for setoff against output VAT/sales tax. The procurements from unorganised sectors or from suppliers who opts for composition scheme under GST could in-

Contd. On Page 102

NEWS BRIEFS Opportunities in Textile Exports in Bellary: 3-Day Training Program Bellary Chamber of Commerce organized a three days training program in export business in Bellary from May 26-28, 2017. The Cotton Textiles Export Promotion Council, popularly known as Texprocil, made a presentation on “Opportunities in Textiles Exports” on May 27, 2017. The presentation made by Shri A. Ravi Kumar, Jt. Director, Texprocil covered trends in textiles & clothing exports, leading export markets for cotton textiles, export benefits, India’s advantages in textiles, MAI scheme, and the role of Texprocil etc.

Shri A. Ravikumar, Joint Director, Texprocil making a presentation on ‘Opportunities in Textile Exports’ at training program in Bellary. in jeans manufacturing, among vari- technology to make readymade garous other garment clusters in the ment was not so common in India. country. The town derived a recogni- Thanks to the native skill of “Darji” tion for its perfection in fittings due community, which came to Bellary to the quality of uniform manufactured stitch the uniforms for the soldiers, during 60’s, during the times when the stationed in the town during the Sec-

The participants sought clarifications on various issues related to export benefits such as MEIS, Duty Drawback etc. and also on GST. All the queries were suitably replied. Bellary is known for its cotton processing industry in the form of ginning, spinning and weaving. The earliest steam cotton-spinning mill was established in 1894 AD, which by 1901 AD had 17,800 spindles, and employed 520 hands. The city continues to thrive in the textiles sector with spinning mill and numerous cotton ginning and pressing mills, handlooms and powerlooms. Currently, Bellary, a small town in Karnataka is well known for its branded and unbranded denim garments, with brands like Point Blank, Walker, Dragonfly and Podium being successfully marketed nationally and internationally. There are about 260 denim garment units in Bellary of all fathomable varieties, manufacturing for the mega brands and supplying to top retail chains. Nearly 3000 families are working in these units. Bellary Denim Cluster Bellary is known for its specialization NCM-JUNE 2017 97

NEWS BRIEFS ond World War. Entrepreneurs from Rajasthan gave the shape of industrial cluster to Bellary, by anticipating the potential that were likely to emerge due to the change in fashion and dress culture of male in India and by utilizing the local skill available. Bellary is a natural cluster and it is one of the oldest garment clusters in India. However, growth of this cluster was far less in terms of technology, turnover and exploitation of opportunities both in domestic and international market, as compared to garment cluster at Bangalore and Indore that emerged much later than Bellary.

Jeans manufacturing is a cottage industry in Bellary. Several manufacturers in the town outsource to local households, with very good sewing and stitching talent. Bellary has only 2-3 manufacturers who do end-to-end manufacturing of jeans. In all other cases, after cutting the cloth as per the design requirement, it is outsourced to households where members of a family, mostly housewives, stitch it and return to manufacturers. There are sub-contractors, who take the work order from manufacturers and give it to families. The outsourcing of the manufacturing of jeans, which involves seven different aspects – cut-

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ting, stitching, buttoning, washing, trimming, ironing and packaging – makes prudent business sense. End Market Bellary’s jeans manufacturers, primarily, market their products in India’s southern states. The rationale for this being the northern markets which source their requirement from several jeans manufacturers based in Mumbai, Gujarat and the NCR are very crowded. Since Bellary is located almost at the centre of South India, focusing on the southern states also make logistical sense. Moreover, the garment business runs on credit as

NEWS BRIEFS distributors take consignments in advance and pay after they sell the garments. Hence, focusing on a particular market helps manufacturers to better manage their inventory. Though the mushrooming of retail chains have also helped Bellary Jean products to get better visibility, the retailers ask for higher margins and if the product is not sold, return it back. Jeans manufacturers operate on wafer thin margins. Irregular demand also make things difficult for Bellary Jean manufacturers. Some of Bellary’s popular jeans brands are Iceberg, Nasty, Hotline, Pierre Bellari, Point Blank, Walker, Key and Podium. The manufacturers of these brands, primarily, target buyers looking for medium to low priced jeans. Seasonality is also the reason for many of the jean manufacturers not having a lot of people on payrolls. Seasonality in demand and volatility in the forex market have also forced several local manufacturers to stop exports. Some companies, however, with own manufacturing units, continue to export to Singapore, Dubai, Sri Lanka, Europe and US. The insignificant level of exports are due to quality issues. Most of the exports are through known contacts and middlemen. The middlemen take care of hedging requirements, in return of export incentives. Future Prospects Thankfully, Bellary doesn’t suffer from one issue that many such manufacturing hubs in India grapple with – relentless power outages. At the same time, being centrally located in the Indian peninsula, most major southern cities are easily reachable from here. However, a lot needs to be improved in terms of transportation means, port access and air travel connections to the town. Yet, more and more entrepreneurs continue to arrive in Bellary to start their business due to the advantage that the capital required to start gar-

Shri Ujwal Lahoti Chairman, Texprocil (2nd from Left) met with Shri Anant Kumar Singh, Secretary, Ministry of Textiles (3rd from Right) along with the new Office Bearers of CITI and representatives of SIMA and briefed the Secretary on various issues including the need for high and competitive Duty Draw Back Rates for the Textile sector. ment business here is less as compared to starting a similar business elsewhere in the country due to its nature and size of operation. Small garment making units (average size of each such unit having 5-10 sewing machines) with spare production capacity are available in plenty. Each such garment units perform one of functions required for garments making like sewing, eye button holing making it easy to start with less investment. Similarly, people who are interested in marketing need not invest in manufacturing units. Specialization in operation and subcontracting of services, which was once strength of Bellary has now become bottleneck for the growth. With the change in the technology level, consumer preferences, fashion and income level garment industry all over the word has undergone transformation. Merchant manufacturers at Bellary are nowadays unable to meet the quality exception of their customers and to deliver the garments in time, particularly during peak business

seasons. Bellary also has not exploited the opportunity, which were thrown open after implementation of Agreement of Textile Clothing under WTO. Way forward Bellary needs to prove its ability to manufacture good quality, high fashion garments. Industry surveys conducted for the goods manufactured in the cluster revealed the existence of good market potential in the mid value segment. Many regional brands and national brands are eyeing the same market segment. Efforts made in this direction by creation of consortiums of firms need to continue. At the same time efforts need to be stepped up for supporting innovation, stepping up R&D activities and enhancing skill building to improve productivity. The need of the hour is to align the products to meet the ever changing trends in the global denim industry. The Council will make all efforts to provide support to the textiles units in the region to increase exports.

Message On GST from Shri Ujwal R Lahoti, Chairman, Texprocil I met the Hon’ble Minister of Finance on 26 May, 2017 along with the repreNCM-JUNE 2017 99

NEWS BRIEFS sentatives of AEPC and leading companies from home textiles and garment sector, to request for continuation of the ROSL Scheme for Madeups and also to extend it to Cotton Yarn and Fabrics. Texprocil also handed over a Memorandum requesting for placing Cotton Textiles in the lower GST Slab of 5%. The Hon’ble Minister of Textiles and the Secretary, Ministry of Textiles also accompanied the delegation to meet the Hon’ble Minister of Finance, thereby extending their full support to the recommendations of the Council. The Hon’ble Minister of Finance assured the delegation that he will get our representations examined. Friends, as we now know, the Cotton Textiles sector has been put in the 5% GST slab and we are grateful to our Textile Minister who provided unstinting support to ensure that the Cotton Sector is put in the lower slab of 5% and India does not loose it’s competitive advantage owing to higher levels of taxation. We have expressed our sincere gratitude to both the Hon’ble Minister of Finance and Textiles through Press Releases (widely publicised) for ensuring that the rates remain low for the Cotton sector. Meeting with Secretary, Ministry of Textiles on 30 May, 2017 I also took the opportunity of meeting Secretary, Ministry of Textiles on 30 May along with the new Office Bearers of CITI and representatives of SIMA. We briefed the Secretary on various issues including the need for high and competitive Duty Draw Back Rates for the Textile sector as data shows that there are duties & taxes which will remain un- rebated after implementation of GST. Further we also requested him to support the need to extend MEIS & interest subvention benefits to Cotton Yarn and also include them along with Fab-

imposition & requesting for reduction to 5% to keep it on par with the rate when the same job is undertaken inhouse. Summing Up Friends, the Government has finalised the GST rates for the Textile & Clothing sector and it is a matter of great relief that the rates are low at 5% for cotton & synthetic fabrics and also for garments below Rs 1000 per piece. Some anomalies remain which is bound to be there when the entire structure of indirect taxation is being overhauled. Shri Ujwal R Lahoti Chairman, Texprocil rics in the ROSL Scheme. The Secretary, Textiles agreed to get the matter examined and showed an inclination to take a positive view in the matter. Implications of GST for Textiles & Clothing Sector Friends, the GST rates announced recently have been welcomed by the Cotton Textile industry by & large as they have been kept at the lower band of 5%. However the rates with respect to Man Made Fibre/ Yarns has been increased to 18% from 12% at present, while the rates for Fabrics made from these fibres has been kept at 5%. The rate for Sewing Thread is increased to 18%. With full GST credit also not available the price of Man-Made Fabrics is expected to increase by 7-8% and also the cost of stitching. An important issue pertains to imposition of 18% GST rate on Job Work charges. However, if the job work processes are carried out in-house by a manufacturer, they will have to pay only 5% GST. As almost all sections of the Textile Industry outsource a part of their manufacturing process to other specialised units, the high rate of tax of 18% will adversely affect these units and also lead to unemployment. Texprocil is representing against this NCM-JUNE 2017 100

We are also pushing for competitive Draw Back rates and also retention of ROSL Scheme for Made- ups on par with Garments. We are also seeking an extension of the ROSL Scheme for the value- added Fabrics/Yarn segments. The new Foreign Trade Policy (FTP) to be announced by July 1, 2017 should hopefully extend MEIS benefits to Cotton Yarn also. Thus, Friends the policy framework is expected to be more conducive for exports and we should all contribute our share by aggressively undertaking marketing efforts so that exports can show a better growth than the previous fiscal year 2016-2017.

“It is a good thing that we do not get as much government as we pay for.” – Will Rogers

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NEWS BRIEFS Contd. From Page 96 crease the cost of materials as such suppliers would not be eligible for any input tax credit. Therefore, the source of procurement would also play a vital role in GST regime. Impact On Cashflow

GST levy on supply Unlike present indirect taxes, GST would be levied on supply of goods or services. Inter-State stock transfers between different units of an entity would be subject to GST. However, transfers between units within the same State would not be liable unless separate GST registrations are obtained for different business verticals. This would have initial impact on cash flow. The receiving unit would be eligible for input tax credit of GST charged by the sending unit on goods sent. The level of stock to be maintained at warehouses, godowns, depots etc. need to be decided considering this cash flow impact.

Return filing All compliances including documentation would be automated in GST regime. Input credit eligibility would be subject to tax payment and return filing by supplier of inputs or services. Credits and liabilities would be matched online on monthly basis w.r.t. the various returns to be filed. As pro-

vided in GST return related repor ts released, there are 3 monthly regular returns to be filed in addition to one annual return followed by audit report. For distributing the credit of GST paid on common input services relating to units in multiple states, there is a separate return prescribed (ISD return). Increase in number of returns could increase compliance cost in the form of additional time and staff recruitment. Matching may lead to smaller unorganised sector facing challenges of survival itself as buyer would not be interested sorting out issue of credit denial.

GST implementation cost Shift to GST regime from present indirect tax regime would have huge impact on the business. There is a need to analyse the impact on the entire business including main functions which would be helpful to ensure preparedness for smooth transition to GST regime. ERP systems would need customisation for compliance under GST. Key personnel vendors should be trained to understand the concept, impact and compliance requirement under GST. Textile industry needs to be ready to meet this additional expenditure. Conclusion: The impact of GST on textile industry would be substantial involving lot

of transitional issues and industry needs to gear up for implementation of GST after understanding the impact. The Government is determined to introduced GST from 1st July 2017. Paper writers feel that ideally 1st September 2017 looks fair considering that the assessees should be given adequate time to transit to the new regime. Early preparation could provide lot of benefits including better transition planning. Professionals need to highlight the importance and assist the assessees in this regard especially the SME sector.

The authors can also be reached at madhukar@hiregange.com and ksnkadv@yahoo.com (Courtesy: CA Club India)

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